Sale of alcoholic liquor for human consumption
- Rate
- 2%
- Who collects
- Seller
- 1961 Act
- Section 206C(1)
Section finders.394 [Table: Sl. No. 1]Act page 492 s.394 [Table: Sl. No. 2]Act page 492 s.394 [Table: Sl. No. 3]Act page 492 s.394 [Table: Sl. No. 4]Act page 492 s.394 [Table: Sl. No. 5]Act page 493 s.394 [Table: Sl. No. 6]Act page 493 s.394 [Table: Sl. No. 7]Act page 493 s.394 [Table: Sl. No. 8]Act page 493 s.394 [Table: Sl. No. 9]Act page 493 section 394Act page 492
Section 206C in the Income-tax Act, 2025
The answer
In the Income-tax Act, 2025, 206C is section 394, 206C(1) is s.394 [Table: Sl. Nos. 1, 2, 3, 4 and 5], 206C(1F) is s.394 [Table: Sl. No. 6], 206C(1G) is s.394 [Table: Sl. Nos. 7 and 8] and 206C(1C) is s.394 [Table: Sl. No. 9]. The Income-tax Act, 2025 is in force from 1 April 2026 and applies from FY 2026-27.
As enacted
Sale of tendu leaves
- Rate
- 2%
- Who collects
- Seller
- 1961 Act
- Section 206C(1)
Sale of timber, or any other forest produce obtained under a forest lease
- Rate
- 2%
- Who collects
- Seller
- 1961 Act
- Section 206C(1)
Sale of scrap
- Rate
- 2%
- Who collects
- Seller
- 1961 Act
- Section 206C(1)
Sale of minerals, being coal or lignite or iron ore
- Rate
- 2%
- Who collects
- Seller
- 1961 Act
- Section 206C(1)
Sale consideration exceeding ₹10,00,000 for a motor vehicle or other notified goods
- Rate
- 1%
- Threshold
- ₹10,00,000
- Who collects
- Seller
- 1961 Act
- Section 206C(1F)
Remittance under the Liberalised Remittance Scheme exceeding ₹10,00,000
- Rate
- 2% for the purposes of education or medical treatment;20% for other purposes
- Threshold
- ₹10,00,000
- Who collects
- Authorised dealer
- 1961 Act
- Section 206C(1G)
Sale of an overseas tour programme package
- Rate
- 2%
- Threshold
- None stated in the Table
- Who collects
- Seller
- 1961 Act
- Section 206C(1G)
Use of a parking lot, toll plaza, mine or quarry for business, excluding mineral oil
- Rate
- 2%
- Who collects
- Licensor or Lessor
- 1961 Act
- Section 206C(1C)
The section itself
Collection of tax at source - the whole TCS section; cite a Table serial where the item is known
- 1961 Act
- Section 206C
Also note
206C(1H) TCS on the sale of goods has no row in the s.394 Table. The transaction is covered by TDS under s.393(1) [Table: Sl. No. 8(ii)] (old 194Q). Retire 206C(1H) for FY 2026-27 rather than remapping it.
Source: the enacted text of the Income-tax Act, 2025 [30 of 2025], as amended by the Finance Act, 2026, pages 492, 493. This page sets out the Table entry as read from the Act; read the section and the Notes to its Table before relying on it for a return or an opinion.
Questions this answers
What is section 206C called in the Income-tax Act, 2025?
In the Income-tax Act, 2025, 206C is section 394, 206C(1) is s.394 [Table: Sl. Nos. 1, 2, 3, 4 and 5], 206C(1F) is s.394 [Table: Sl. No. 6], 206C(1G) is s.394 [Table: Sl. Nos. 7 and 8] and 206C(1C) is s.394 [Table: Sl. No. 9]. The Income-tax Act, 2025 is in force from 1 April 2026 and applies from FY 2026-27.
What is the TCS rate and threshold under s.394 [Table: Sl. No. 1]?
Rate: 2%. It covers: Sale of alcoholic liquor for human consumption.
What is the TCS rate and threshold under s.394 [Table: Sl. No. 2]?
Rate: 2%. It covers: Sale of tendu leaves.
What is the TCS rate and threshold under s.394 [Table: Sl. No. 3]?
Rate: 2%. It covers: Sale of timber, or any other forest produce obtained under a forest lease.
What is the TCS rate and threshold under s.394 [Table: Sl. No. 4]?
Rate: 2%. It covers: Sale of scrap.
What happens to 206C(1H) under the Income-tax Act, 2025?
TCS on the sale of goods has no row in the s.394 Table. The transaction is covered by TDS under s.393(1) [Table: Sl. No. 8(ii)] (old 194Q). Retire 206C(1H) for FY 2026-27 rather than remapping it.