The Tax Collected at Source (TCS) provisions under the Income Tax Act are important for businesses dealing in specified goods, foreign remittances, overseas tour packages, motor vehicles, scrap, minerals, and other notified transactions.
To help taxpayers, businesses, accountants, and tax professionals, we have prepared a simplified and updated TCS Rate Chart for Tax Year 2026-27 based on the provisions of the Income Tax Act, 2025.
This chart covers:
- Old and New Section Mapping
- Applicable TCS Rates
- 1961 & 2025 Payment Codes
- Threshold Limits
- Specified Transactions Covered under TCS
The chart is useful for traders, manufacturers, dealers, finance teams, and tax professionals for quick compliance reference.
| Old Section | New Section | Old Payment Code | New Payment Code | Nature of Payment | Rate | Threshold Limit |
| 206C(1) | 394(1) [Table: Sl. No. 1] | 6CA | 1068 | Alcoholic Liquor for human consumption | 2% | – |
| 206C(1) | 394(1) [Table: Sl. No. 2] | 6CI | 1069 | Tendu leaves | 2% | – |
| 206C(1) | 394(1) [Table: Sl. No. 3] | 6CB | 1070 | Timber obtained under a forest lease | 2% | – |
| 206C(1) | 394(1) [Table: Sl. No. 3] | 6CC | 1071 | Timber obtained by any mode other than under a forest lease | 2% | – |
| 206C(1) | 394(1) [Table: Sl. No. 3] | 6CD | 1072 | Any other forest produce not being timber or tendu leaves | 2% | – |
| 206C(1) | 394(1) [Table: Sl. No. 4] | 6CE | 1073 | Scrap | 2% | – |
| 206C(1) | 394(1) [Table: Sl. No. 5] | 6CJ | 1074 | Minerals, being coal or lignite or iron ore | 2% | – |
| 206C(1F) | 394(1) [Table: Sl. No. 6.D(a)] | 6CL | 1075 | Sale of Motor Vehicle | 1% | > 10 lakh |
| 206C(1F) | 394(1) [Table: Sl. No. 6.D(b)] | 6CL | 1076 to 1085 | Any other goods, as may be notified by the Central Government | 1% | > 10 lakh |
| 206C(1G) | 394(1) [Table: Sl. No. 7.D(a)] | 6CQ | 1086 | Education and Medical remittance under LRS | 2% | > 10 lakh |
| 206C(1G) | 394(1) [Table: Sl. No. 7.D(b)] | 6CQ | 1087 | Other foreign remittances | 20% | > 10 lakh |
| 206C(1G) | 394(1) [Table: Sl. No. 8.D(a)] | 6CO | 1088 | Sale of Overseas Tour Program Package | 2% | <= 10 lakh |
| 206C(1G) | 394(1) [Table: Sl. No. 8.D(b)] | 6CO | 1089 | Sale of Overseas Tour Program Package | 2% | > 10 lakh |
| 206C(1C) | 394(1) [Table: Sl. No. 9] | 6CF | 1090 | Parking lots | 2% | – |
| 206C(1C) | 394(1) [Table: Sl. No. 9] | 6CG | 1091 | Toll Plaza | 2% | – |
| 206C(1C) | 394(1) [Table: Sl. No. 9] | 6CH | 1092 | Mining and quarrying | 2% | – |
Important Notes
- TCS rates mentioned above are general rates applicable under normal circumstances.
- Higher TCS rates may apply where PAN is not furnished by the buyer or remitter.
- Threshold limits and applicability conditions should be verified under respective provisions.
- Payment codes are relevant while depositing TCS through challans.
- The above chart is prepared for quick reference and educational purposes only.
TCS compliance has become increasingly important for businesses dealing in specified goods and foreign remittance transactions. Proper understanding of applicable TCS rates, threshold limits, and payment codes is essential to avoid defaults, interest, and penalties.
Businesses should regularly review amendments and notifications issued under the Income Tax Act, 2025 to ensure correct TCS collection and reporting.
Bookmark this page for quick reference to TCS Rates for FY 2026-27.
