List of TCS (tax collected at source) rates along with related transactions and budget proposals for the financial year 2025-26 (AY-2026-27) is provided in the table given below.-
TCS Rate Chart for FY 2025-26 (AY 2026-27)
| Section | Nature of transaction | TCS rate applicable for FY 2025-26 |
| 206C(1) | Sale of Alcoholic liquor for human consumption | 1% |
| 206C(1) | Sale of Tendu Leaves | 5% |
| 206C(1) | Sale of Timber obtained under a forest lease | 2% |
| 206C(1) | Sale of timber obtained by any mode other than under a forest lease | 2% |
| 206C(1) | Sale of any other forest produce not being timber or tendu leaves | 2% |
| 206C(1) | Sale of scrap | 1% |
| 206C(1) | Minerals, being coal or lignite or iron ore | 1% |
| 206C(1C) | Grant of licence or lease etc of Parking lot | 2% |
| 206C(1C) | Grant of licence or lease etc of Toll Plaza | 2% |
| 206C(1C) | Grant of licence or lease etc of Mining or quarrying | 2% |
| 206C(1F) | Sale of a motor vehicle of the value exceeding Rs. 10 Lakh | 1% |
| 206C(1G) | Foreign Remittance under Liberalised Remittance Scheme of Reserve Bank of India exceeding Rs. 7 Lakh , If the remittance is a loan obtained from any financial institution as defined in section 80E, for the purpose of pursuing any education | Not applicable w.e.f 1.4.2025 |
| 206C(1G) | Foreign Remittance under Liberalised Remittance Scheme of the Reserve Bank of India exceeding Rs. 7 Lakh , if the remittance is for the purposes of education or medical treatment | 5% |
| 206C(1G) | Other Foreign Remittances under Liberalised Remittance Scheme (LRS) and overseas tour package | Upto 30.06.2023= 5% w.e.f 1.7.2023 = 20% |
| 206C(1H) (w.e.f. 01-10-2020) | Sale of goods in excess of Rs. 50 Lakh in a year by a seller whose turnover is more than Rs. 10 Crore | Not applicable w.e.f 1.4.2025 |
Note:-
(1) Removal of required of TCS u/s 206C(1H) w.e.f 1.4.2025:- Section 206C(1H) has been removed from April 1, 2025, and the seller will not have to collect TCS on goods sold.
(1a) With effect from 1.4.2025- The TCS rates for Timber and other forest produce, other than tendu leaves under section 206C(1) has been reduced to 2% from the previous limit of 2.5%.
(2) Section 206C(1G) – Change in TCS rate w.e.f 01.04.2025.
- W.e.f 1.4.2025 NO TCS required if Remittance under LRS for education if financed through educational loans.
(3) Section 206AB & 206CCA – Removed w.e.f 1st April 2025
These sections provide for Higher TCS/TDS rate for non-filer of ITR but there are certain persons who are not obliged to file tax return in India i.e. non-resident with no PAN and persons notified by the government. W.e.f. 1 April 2023 it is proposed to exclude such persons from the ambit of this Section and provide relief from a higher TDS/TCS rate. These section removed w.e.f 1.4.25
(5) TCS Rate if valid PAN not furnished:-
As per section 206CC, if the buyer does not furnish his PAN (or Aadhaar No.) to the seller, then the rate of TCS shall be higher of-(a) twice the prescribed rate, or(b) 5 per cent except for TCS on Sale of goods in excess of Rs. 50 Lakh in a year by a seller whose turnover is more than Rs. 10 Crore for which 5 per cent is substituted with 1 per cent.
(6) Surcharge on TCS:-
- Surcharge is not to be added in rate of TCS in case of resident individual/ HUF /Firm/LLP/ AOP / BOI/Domestic Company.
- In case of Non-resident & Foreign company, Surcharge is to be added in the rates of TCS at the following rates.
Non Residents other than company (if income exceeds Rs. 50 Lakh but not exceeds Rs. 1 Crore) 10% Non Residents other than company (if income exceeds Rs. 1 Crore) 15% Non Resident companies if income is between Rs. 1 Crore and 10 Crore 2% Non Resident companies if income is greater than Rs. 10 Crore 5% Surcharge on Co-operative Society & Firms in case of Non-Residents (if income exceeds Rs. 1 crore) 12%
(7) Education Cess & SHEC on TCS:-
- EC & SHEC is not to be added in rates of TCS in case of resident Individual/HUF/Firm/ AOP/ BOI/ Domestic Company.
- Education Cess @ 2% & SHEC @ 1% is deductible at source in case of non-residents and foreign company.
