Section 206C - Profits and gains from the business of trading in alcoholic liquor, forest produce, scrap, etc. - Income-tax Act, 1961

1 [ BB.-Collection at source Profits and gains from the business of trading in alcoholic liquor, forest produce, scrap, etc. 206C. 2 [(1) Every person, being a seller shall, at the time of debiting of the amount payable by the buyer to the account of the buyer or at the time of receipt of such amount from the said buyer in cash or by the issue of a cheque or draft or by any other mode, whichever is earlier, collect from the buyer of any goods of the nature specified in column (2) of the Table below, a sum equal to the percentage, specified in the corresponding entry in column (3) of the said Table, of such amount as income-tax: 3 [TABLE Sl. No. Nature of goods Percentage (1) (2) (3) ( i ) Alcoholic Liquor for human consumption One per cent ( ii ) Tendu leaves Five per cent ( iii ) Timber obtained under a forest lease Two and one-half per cent ( iv ) Timber obtained by any mode other than under a forest lease Two and one-half per cent ( v ) Any other forest produce not being timber or tendu leaves Two and one-half per cent ( vi ) Scrap One per cent:] 42 [ (vii) Minerals, being coal or lignite or iron ore one per cent. ] 4 [Provided that every person, being a seller shall at the time, during the period beginning on the 1st day of June, 2003 and ending on the day immediately preceding the date on which the Taxation Laws (Amendment) Act, 2003 comes into force, of debiting of the amount payable by the buyer to the account of the buyer or of receipt of such amount from the said buyer in cash or by the issue of a cheque or draft or by any other mode, whichever is earlier, collect from the buyer of any goods of the nature specified in column (2) of the Table as it stood immediately before the 1st day of June, 2003, a sum equal to the percentage, specified in the corresponding entry in column (3) of the said Table, of such amount as income-tax in accordance with the provisions of this section as they stood immediately before the 1st day of June, 2003.]] 5 [(1A) Notwithstanding anything contained in sub-section (1), no collection of tax shall be made in the case of a buyer, who is resident in India, if such buyer furnishes to the person responsible for collecting tax, a declaration in writing in duplicate in the prescribed form and verified in the prescribed manner to the effect that the goods referred to in column (2) of the aforesaid Table are to be utilised for the purposes of manufacturing, processing or producing articles or things, 42 [ or for the purposes of generation of power ] and not for trading purposes. (1B) The person responsible for collecting tax under this section shall deliver or cause to be delivered to the 46 [Principal Chief Commissioner or] Chief Commissioner or 46 [Principal Commissioner or] Commissioner one copy of the declaration referred to in sub-section (1A) on or before the seventh day of the month next following the month in which the declaration is furnished to him.] 6 [(1C) Every person, who grants a lease or a licence or enters into a contract or otherwise transfers any right or interest either in whole or in part in any parking lot or toll plaza or mine or quarry, to another person, other than a public sector company (hereafter in this section referred to as licensee or lessee ) for the use of such parking lot or toll plaza or mine or quarry for the purpose of business shall, at the time of debiting of the amount payable by the licensee or lessee to the account of the licensee or lessee or at the time of receipt of such amount from the licensee or lessee in cash or by the issue of a cheque or draft or by any other mode, whichever is earlier, collect from the licensee or lessee of any such licence, contract or lease of the nature specified in column (2) of the Table below, a sum equal to the percentage, specified in the corresponding entry in column (3) of the said Table, of such amount as income-tax: Table Sl. No. Nature of contract or licence or lease, etc. Percentage (1) (2) (3) ( i ) Parking lot Two per cent ( ii ) Toll plaza Two per cent ( iii ) Mining and quarrying Two per cent.] 7 [ Explanation 1.- For the purposes of this sub-section, mining and quarrying shall not include mining and quarrying of mineral oil. Explanation 2.- For the purposes of Explanation 1, mineral oil includes petroleum and natural gas. ] (1D) 54 [***] (1E) 51 [ 54 [***] 80 [ (1F) Every person, being a seller, who receives any amount as consideration for sale of (i) a motor vehicle; or (ii) any other goods, as may be specified by the Central Government by notification in the Official Gazette, of the value exceeding ten lakh rupees, shall, at the time of receipt of such amount, collect from the buyer, a sum equal to one per cent. of the sale consideration as income-tax. ]] 62 [ (1G) Every person, (a) being an authorised dealer, who receives an amount, for remittance 70 [ **** ] from a buyer, being a person remitting such amount 70 [ **** ] under the Liberalised Remittance Scheme of the Reserve Bank of India; (b) being a seller of an overseas tour programme package, who receives any amount from a buyer, being the person who purchases such package, shall, at the time of debiting the amount payable by the buyer or at the time of receipt of such amount from the said buyer, by any mode, whichever is earlier, collect from the buyer, a sum equal to 74 [ five ] per cent. of such amount as income-tax: Provided that the authorised dealer shall not collect the sum, if the amount or aggregate of the amounts being remitted by a buyer is less than seven lakh rupees in a financial year 75 [ **** ] : Provided further that the sum to be collected by an authorised dealer from the buyer shall be equal to 76 [ twenty ] per cent. of the amount or aggregate of the amounts in excess of seven lakh rupees remitted by the buyer in a financial year, where the amount being remitted 73 [ 77 [ is for purposes other than ] education or medical treatment ] : Provided also that the authorised dealer shall collect a sum equal to one half per cent. of the amount or aggregate of the amounts in excess of seven lakh rupees remitted by the buyer in a financial year, if the amount being remitted out is a loan obtained from any financial institution as defined in section 80E, for the purpose of pursuing any education: 78 [ Provided also that the seller of an overseas tour programme package shall collect a sum of twenty per cent. of the amount or aggregate of amounts in excess of seven lakh rupees received from the buyer in a financial year: ] Provided also that the authorised dealer shall not collect the sum on an amount in respect of which the sum has been collected by the seller: Provided also that the provisions of this sub-section shall not apply, if the buyer is, (i) liable to deduct tax at source under any other provision of this Act and has deducted such amount; (ii) the Central Government, a State Government, an embassy, a High Commission, a legation, a commission, a consulate, the trade representation of a foreign State, a local authority as defined in the Explanation to clause (20) of section 10 or any other person as the Central Government may, by notification in the Official Gazette, specify for this purpose, subject to such conditions as may be specified therein. 79 [ Provided also that the sum to be collected under this sub-section on or after the 1st day of July, 2023 and before the 1st day of October, 2023, shall be collected in accordance with the provisions of this sub-section as they stood on the 1st day of April, 2023. ] Explanation . For the purposes of this sub-section, (i) authorised dealer means a person authorised by the Reserve Bank of India under sub-section (1) of section 10 of the Foreign Exchange Management Act, 1999 (42 of 1999.) to deal in foreign exchange or foreign security; (ii) overseas tour program package means any tour package which offers visit to a country or countries or territory or territories outside India and includes expenses for travel or hotel stay or boarding or lodging or any other expenditure of similar nature or in relation thereto. (1H) Every person, being a seller, who receives any amount as consideration for sale of any goods of the value or aggregate of such value exceeding fifty lakh rupees in any previous year, other than the goods being exported out of India or goods covered in sub-section (1) or sub-section (1F) or sub-section (1G) shall, at the time of receipt of such amount, collect from the buyer, a sum equal to 0.1 per cent. of the sale consideration exceeding fifty lakh rupees as income-tax: Provided that if the buyer has not provided the Permanent Account Number or the Aadhaar number to the seller, then the provisions of clause (ii) of sub-section (1) of section 206CC shall be read as if for the words five per cent. , the words one per cent. had been substituted: Provided further that the provisions of this sub-section shall not apply, if the buyer is liable to deduct tax at source under any other provision of this Act on the goods purchased by him from the seller and has deducted such amount. Explanation . For the purposes of this sub-section, (a) buyer means a person who purchases any goods, but does not include, (A) the Central Government, a State Government, an embassy, a High Commission, legation, commission, consulate and the trade representation of a foreign State; or (B) a local authority as defined in the Explanation to clause (20) of section 10; or (C) a person importing goods into India or any other person as the Central Government may, by notification in the Official Gazette, specify for this purpose, subject to such conditions as may be specified therein; (b) seller means a person whose total sales, gross receipts or turnover from the business carried on by him exceed ten crore rupees during the financial year immediately preceding the financial year in which the sale of goods is carried out, not being a person as the Central Government may, by notification in the Official Gazette, specify for this purpose, subject to such conditions as may be specified therein. ; (1-I) If any difficulty arises in giving effect to the provisions of subsection (1G) or sub-section (1H), the Board may, with the approval of the Central Government, issue guidelines for the purpose of removing the difficulty. (1J) Every guideline issued by the Board under sub-section (1-I) shall be laid before each House of Parliament, and shall be binding on the Income-tax authorities and on the person liable to collect the sum. ] (2) The power to recover tax by collection under 63 [ this section ] 55 [***]] shall be without prejudice to any other mode of recovery. (3) Any person collecting any amount under 64 [ this section ] 55 [***]] shall pay within 37 [the prescribed time] the amount so collected to the credit of the Central Government or as the Board directs : 10 [Provided that the person collecting tax on or after the 1st day of April, 2005 in accordance with the foregoing provisions of this section shall, after paying the tax collected to the credit of the Central Government within the prescribed time, 39 [prepare such statements for such period as may be prescribed] and deliver or cause to be delivered to the prescribed income-tax authority, or the person authorised by such authority, such statement in such form and verified in such manner and setting forth such particulars and within such time as may be prescribed.] 47 [(3A) In case of an office of the Government, where the amount collected under sub-section (1) or sub-section (1C) 55 [***] has been paid to the credit of the Central Government without the production of a challan, the Pay and Accounts Officer or the Treasury Officer or the Cheque Drawing and Disbursing Officer or any other person, by whatever name called, who is responsible for crediting such tax to the credit of the Central Government, shall deliver or cause to be delivered to the prescribed income-tax authority, or to the person authorised by such authority, a statement in such form, verified in such manner, setting forth such particulars and within such time as may be prescribed. (3B) The person referred to in the proviso to sub-section (3) may also deliver to the prescribed authority under the said proviso, a correction statement for rectification of any mistake or to add, delete or update the information furnished in the statement delivered under the said proviso in such form and verified in such manner, as may be specified by the authority.] 81 [Provided that no correction statement shall be delivered after the expiry of six years from the end of the financial year in which the statement referred to in the proviso to sub-section (3) is required to be delivered. ] 38 [ (4) Any amount collected in accordance with the provisions of this section and paid to the credit of the Central Government shall be deemed to be a payment of tax on behalf of the person from whom the amount has been collected and credit shall be given to such person 82 [ or any other person eligible for credit ] for the amount so collected in a particular assessment year in accordance with the rules as may be prescribed by the Board from time to time. ] (5) Every person collecting tax in accordance with the provisions of this section shall within 13 [such period as may be prescribed from the time of debit] or receipt of the amount furnish to the buyer 14 [or licensee or lessee] to whose account such amount is debited or from whom such payment is received, a certificate to the effect that tax has been collected, and specifying the sum so collected, the rate at which the tax has been collected and such other particulars as may be prescribed : 15 [ 40 [***]] : 41 [Provided] that the prescribed income-tax authority or the person authorised by such authority referred to in sub-section (3) shall, within the prescribed time after the end of each financial year 17 [beginning on or after the 1st day of April, 2008], prepare and deliver to the buyer referred to in sub-section (1) or, as the case may be, to the licensee or lessee referred to in sub-section (1C), a statement in the prescribed form specifying the amount of tax collected and such other particulars as may be prescribed.] 18 [(5A) Every person collecting tax 19 [before the 1st day of April, 2005] in accordance with the provisions of this section shall 20 [prepare within the prescribed time after the end of each financial year], and deliver or cause to be delivered to the prescribed income-tax authority 21 [or such other authority or agency as may be prescribed] such returns in such form and verified in such manner and setting forth such particulars and within such time as may be prescribed :] 22 [ Provided that the Board may, if it considers necessary or expedient so to do, frame a scheme for the purposes of filing such returns with such other authority or agency referred to in this sub-section.] 23 [(5B) Without prejudice to the provisions of sub-section (5A), any person collecting tax, other than in a case where the seller is a company, the Central Government or a State Government, may at his option, deliver or cause to be delivered such return to the prescribed income-tax authority in accordance with such scheme as may be specified by the Board in this behalf, by notification in the Official Gazette, and subject to such conditions as may be specified therein, on or before the prescribed time after the end of each financial year, on a floppy, diskette, magnetic cartridge tape, CD-ROM or any other computer readable media (hereinafter referred to as the computer media) and in the manner as may be specified in that scheme: Provided that where the person collecting tax is a company or the Central Government or a State Government, such person shall, in accordance with the provisions of this section, deliver or cause to be delivered, within the prescribed time after the end of each financial year, such returns on computer media under the said scheme. (5C) Notwithstanding anything contained in any other law for the time being in force, a return filed on computer media shall be deemed to be a return for the purposes of sub-section (5A) and the rules made thereunder and shall be admissible in any proceedings made thereunder, without further proof of production of the original, as evidence of any contents of the original or of any facts stated therein. (5D) Where the Assessing Officer considers that the return delivered or caused to be delivered under sub-section (5B) is defective, he may intimate the defect to the person collecting tax and give him an opportunity of rectifying the defect within a period of fifteen days from the date of such intimation or within such further period which, on an application made in this behalf, the Assessing Officer may, in his discretion, allow; and if the defect is not rectified within the said period of fifteen days or, as the case may be, the further period so allowed, then, notwithstanding anything contained in any other provision of this Act, such return shall be treated as an invalid return and the provisions of this Act shall apply as if such person had failed to deliver the return.] (6) Any person responsible for collecting the tax who fails to collect the tax in accordance with the provisions of this section, shall, notwithstanding such failure, be liable to pay the tax to the credit of the Central Government in accordance with the provisions of sub-section (3). 24 [(6A) If any person responsible for collecting tax in accordance with the provisions of this section does not collect the whole or any part of the tax or after collecting, fails to pay the tax as required by or under this Act, he shall, without prejudice to any other consequences which he may incur, be deemed to be an assessee in default in respect of the tax: 42 [Provided that any person 56 [***], responsible for collecting tax 65 [ in accordance with the provisions of sub-section (1) and sub-section (1C) ] , who fails to collect the whole or any part of the tax on the amount received from a buyer or licensee or lessee or on the amount debited to the account of the buyer or licensee or lessee shall not be deemed to be an assessee in default in respect of such tax if such buyer or licensee or lessee- ( i ) has furnished his return of income under section 139; ( ii ) has taken into account such amount for computing income in such return of income; and ( iii ) has paid the tax due on the income declared by him in such return of income, and the person furnishes a certificate to this effect from an accountant in such form as may be prescribed ] : 43 [Provided further that ] no penalty shall be charged under section 221 from such person unless the Assessing Officer is satisfied that the person has without good and sufficient reasons failed to collect and pay the tax.] (7) Without prejudice to the provisions of sub-section (6), if the 25 [ person responsible for collecting tax ] does not collect the tax or after collecting the tax fails to pay it as required under this section, he shall be liable to pay simple 83 [ interest (a) at the rate of one per cent. for every month or part thereof on the amount of such tax from the date on which such tax was collectible to the date on which such tax is collected; and (b) at the rate of one and one-half per cent. for every month or part thereof on the amount of such tax from the date on which such tax was collected to the date on which such tax is actually paid, and such interest shall be paid ] before furnishing the quarterly statement for each quarter in accordance with the provisions of sub-section (3)]. 84 [ (7A) No order shall be made under sub-section (6A) deeming a person to be an assessee in default for failure to collect the whole or any part of the tax from any person, at any time after the expiry of six years from the end of the financial year in which tax was collectible or two years from the end of the financial year in which the correction statement is delivered under sub-section (3B), whichever is later. ] 42 [Provided that in case any person, 57 [***] responsible for collecting tax in accordance with the provisions of this section, fails to collect the whole or any part of the tax on the amount received from a buyer or licensee or lessee or on the amount debited to the account of the buyer or licensee or lessee but is not deemed to be an assessee in default under the first proviso of sub-section (6A), the interest shall be payable from the date on which such tax was collectible to the date of furnishing of return of income by such buyer or licensee or lessee. ] 69 [ Provided further that where an order is made by the Assessing Officer for the default under sub-section (6A), the interest shall be paid by the person in accordance with such order. ] (8) Where the tax has not been paid as aforesaid, after it is collected, the amount of the tax together with the amount of simple interest thereon referred to in sub-section (7) shall be a charge upon all the assets of the 28 [ person responsible for collecting tax ].] 29 [(9) Where the Assessing Officer is satisfied that the total income of the buyer 30 [or licensee or lessee] justifies the collection of the tax at any lower rate than the relevant rate specified in 85 [ sub-section (1), sub-section (1C) or sub-section (1H) ] 55 [***]], the Assessing Officer shall, on an application made by the buyer 32 [or licensee or lessee] in this behalf, give to him a certificate for collection of tax at such lower rate than the relevant rate specified in 85 [ sub-section (1), sub-section (1C) or sub-section (1H) ] 42 [ or sub-section (1D) ] ]. (10) Where a certificate under sub-section (9) is given, the person responsible for collecting the tax shall, until such certificate is cancelled by the Assessing Officer, collect the tax at the rates specified in such certificate. 68 [ (10A) In case the provisions of sub-sections (1) [except the goods referred at serial number (i) in the TABLE], (1C), (1F) or (1H) require collection of tax at source during the period commencing from the 14th day of May, 2020 to the 31 st day of March, 2021, then, notwithstanding anything contained in these sub-sections the collection of tax shall be made at the rate being the three-fourth of the rate specified in these sub-sections. ] (11) The Board may, having regard to the convenience of assessees and the interests of revenue, by notification in the Official Gazette, make rules specifying the cases in which, and the circumstances under which, an application may be made for the grant of a certificate under sub-section (9) and the conditions subject to which such certificate may be granted and providing for all other matters connected therewith.] 34 [ Explanation.- For the purposes of this section,- 44 [ ( a ) accountant shall have the meaning assigned to it in the Explanation to sub-section (2) of section 288; ( aa ) buyer with respect to- ( i ) sub-section (1) means a person who obtains in any sale, by way of auction, tender or any other mode, goods of the nature specified in the Table in sub-section (1) or the right to receive any such goods but does not include,- ( A ) a public sector company, the Central Government, a State Government, and an embassy, a High Commission, legation, commission, consulate and the trade representation, of a foreign State and a club; or ( B ) a buyer in the retail sale of such goods purchased by him for personal consumption; (ii) 58 [***] 59 [(iii) sub-section (1F) means a person who obtains in any sale, goods of the nature specified in the said sub-section, but does not include,- (A) the Central Government, a State Government and an embassy, a High Commission, legation, commission, consulate and the trade representation of a foreign State; or (B) a local authority as defined in Explanation to clause (20) of section 10; or (C) a public sector company which is engaged in the business of carrying passengers.] 60 [***] 36 [( b ) scrap means waste and scrap from the manufacture or mechanical working of materials which is definitely not usable as such because of breakage, cutting up, wear and other reasons; ( c ) seller 66 [ with respect to sub-section (1) and sub-section (1F) means ] the Central Government, a State Government or any local authority or corporation or authority established by or under a Central, State or Provincial Act, or any company or firm or co-operative society and also includes an individual or a Hindu undivided family whose total sales, gross receipts or turnover from the business or profession carried on by him exceed 67 [ one crore rupees in case of business or fifty lakh rupees in case of profession ] during the financial year immediately preceding the financial year in which the goods of the nature specified in the Table in sub-section (1) 61 [are sold].]] 86 [ (12) Notwithstanding anything contained in this section, no collection of tax shall be made or collection of tax shall be made at such lower rate in respect of specified transaction, from such person or class of persons, including institution, association or body or class of institutions, associations or bodies, as the Central Government may, by notification in the Official Gazette specify in this behalf. ] -------------------- Notes ;- 1. Inserted by the Finance Act, 1988, w.e.f. 1-6-1988. 2. Substituted by the Finance Act, 1992, w.e.f. 1-4-1992. Prior to substitution, sub-section (1) was amended by the Direct Tax Laws (Amendment) Act, 1989, w.r.e.f. 1-6-1988. 3. Substituted by the Taxation Laws (Amendment) Act, 2003, w.e.f. 8-9-2003. Prior to its substitution, the Table, as amended by the Finance Act, 1992, w.e.f. 1-4-1992, Finance (No. 2) Act, 1996, w.e.f. 1-10-1996 and Finance Act, 2003, w.e.f. 1-6-2003, read as under : TABLE Sl. No. Nature of goods Percentage (1) (2) (3) ( i ) Alcoholic liquor for human consumption and tendu leaves Ten per cent ( ii ) Timber obtained under a forest lease Fifteen per cent ( iii ) Timber obtained by any mode other than under a forest lease Five per cent ( iv ) Any other forest produce not being timber or tendu leaves Fifteen per cent ( v ) Scrap Ten per cent : 4. Substituted by the Taxation Laws (Amendment) Act, 2003, w.e.f. 8-9-2003. Prior to its substitution, proviso read as under : Provided that where the Assessing Officer, on an application made by the buyer, gives a certificate in the prescribed form that to the best of his belief any of the goods referred to in the aforesaid Table are to be utilised for the purposes of manufacturing, processing or producing articles or things and not for trading purposes, the provisions of this sub-section shall not apply so long as the certificate is in force. 5. Inserted by the Taxation Laws (Amendment) Act, 2003, w.e.f. 8-9-2003. 6. Inserted by the Finance (No. 2) Act, 2004, w.e.f. 1-10-2004. 7. Inserted by the Finance Act, 2007, w.e.f. 1-6-2007. 8 . Inserted by the Finance (No. 2) Act, 2004, w.e.f. 1-10-2004. 9. Inserted by the Finance (No. 2) Act, 2004, w.e.f. 1-10-2004. 10. Inserted by the Finance (No. 2) Act, 2004, w.e.f. 1-4-2005. 11. Inserted by the Finance (No. 2) Act, 2004, w.e.f. 1-4-2005. 12. Substituted for 2006 by the Finance Act, 2006, w.e.f. 1-4-2006. Earlier 2006 was substituted for 2005 by the Finance Act, 2005, w.e.f. 1-4-2005. 13. Substituted for ten days from the date of debit by the Taxation Laws (Amendment) Act, 2003, w.e.f. 8-9-2003. 14. Inserted by the Finance (No. 2) Act, 2004, w.e.f. 1-10-2004. 15. Inserted by the Finance (No. 2) Act, 2004, w.e.f. 1-4-2005. 16. Substituted for 2008 by Finance Act, 2008, w.e.f. 1.4.2008.Earlier it was substituted for 2006 by the Finance Act, 2006, w.e.f. 1-4-2006. Earlier 2006 was substituted for 2005 by the Finance Act, 2005, w.e.f. 1-4-2005. 17. Inserted by the Finance Act, 2006, w.r.e.f. 1-4-2005. 18. Inserted by the Direct Tax Laws (Amendment) Act, 1989, w.e.f. 1-4-1989. 19. Inserted by the Finance Act, 2006, w.e.f. 1-4-2006. 20. Substituted for prepare half yearly returns for the period ending on 30th September and 31st March in each financial year by the Finance (No. 2) Act, 2004, w.e.f. 1-10-2004. 21. Inserted by the Finance (No. 2) Act, 2004, w.e.f. 1-10-2004. 22. Inserted by the Finance (No. 2) Act, 2004, w.e.f. 1-10-2004. 23. Sub-sections (5B), (5C) and (5D) substituted for sub-sections (5B) and (5C) by the Finance (No. 2) Act, 2004, w.e.f. 1-4-2005. Prior to their substitution, sub-sections (5B) and (5C), as inserted by the Finance Act, 1999, w.e.f 1-6-1999, read as under : (5B) Notwithstanding anything contained in any other law for the time being in force, a return filed on a floppy, diskette, magnetic cartridge tape, CD-ROM or any other computer readable media as may be specified by the Board (hereinafter referred to as the computer media) shall be deemed to be a return for the purposes of sub-section (5A) and the rules made thereunder and shall be admissible in any proceedings thereunder, without further proof of production of the original, as evidence of any contents of the original or of any fact stated therein. (5C) A return filed under sub-section (5B) shall fulfil the following conditions, namely:- (a) while receiving returns on computer media, necessary checks by scanning the documents filed on computer media will be carried out and the media will be duly authenticated by the Assessing Officer; and (b) the Assessing Officer shall also take due care to preserve the computer media by duplicating, transferring, mastering or storage without loss of data. 24. Inserted by the Finance Act, 2006, w.e.f. 1-4-2007. 25. Substituted for seller by the Finance Act, 2006, w.e.f. 1-4-2007. 26. Substituted for one and one-fourth by the Taxation Laws (Amendment) Act, 2003, w.e.f. 8-9-2003. Earlier the quoted words were substituted for two by the Finance Act, 2001, w.e.f. 1-6-2001. 27. Inserted by the Finance Act, 2006, w.e.f. 1-6-2006. 28. Substituted for seller by the Finance Act, 2006, w.e.f. 1-4-2007. 29. Sub-sections (9), (10) and (11) inserted by the Finance Act, 1999, w.e.f. 1-6-1999. 30. Inserted by the Finance (No. 2) Act, 2004, w.e.f. 1-10-2004. 31. Inserted by the Finance (No. 2) Act, 2004, w.e.f. 1-10-2004. 32. Inserted by the Finance (No. 2) Act, 2004, w.e.f. 1-10-2004. 33. Inserted by the Finance (No. 2) Act, 2004, w.e.f. 1-10-2004. 34. Inserted by the Finance Act, 1992, w.e.f. 1-4-1992. 35. Substituted by the Taxation Laws (Amendment) Act, 2003, w.e.f. 8-9-2003. Earlier sub-clauses (i) and (ii), as substituted for sub-clauses (i), (ii) and (iii) by the Finance Act, 2003, w.e.f. 1-6-2003, read as under : (i) a public sector company, or (ii) a buyer in the retail sale of such goods obtained in pursuance of such sale; 36. Clauses (b) and (c) substituted for clause (b) by the Finance Act, 2003, w.e.f. 1-6-2003. Prior to its substitution, clause (b) read as under : '(b) seller means the Central Government, a State Government or any local authority or corporation or authority established by or under a Central, State or Provincial Act, or any company or firm or co-operative society.' 37 . Substituted for seven days by the Taxation Laws (Amendment) Act, 2003, w.e.f. 8-9-2003. 38. Substituted by the Finance Act, 2008, w.e.f.1-4-2008. Prior to substitution section 4 was read as under: (4) Any amount collected in accordance with the provisions of this section and paid under sub-section (3) shall be deemed as payment of tax on behalf of the person from whom the amount has been collected and credit shall be given to him for the amount so collected on the production of the certificate furnished under sub-section (5) in the assessment made under this Act for the assessment year for which such income is assessable : 11 [Provided that where any amount is collected in accordance with the provisions of this section on or after the 1st day of April, 12 [2008] and paid under sub-section (3) to the credit of the Central Government, the amount of tax collected and specified in the statement referred to in the second proviso to sub-section (5) shall be deemed as payment of tax on behalf of the person from whom the amount has been collected and credit shall be given to him for the amount so collected in the assessment made under this Act for the assessment year for which such income is assessable without the production of certificate. 39 . Substituted vide Finance (No.2) Act, 2009, w.e.f. 1-10-2009, before it was read as, ''prepare quarterly statements for the period ending on the 30th June, the 30th September, the 31st December and the 31st March in each financial year 40. In sub-section (5), the first proviso has been omitted vide Finance Act, 2010 w.e.f. 01.04.2010 41. In the second proviso, for the words Provided further , the word Provided has been substituted vide Finance Act, 2010 w.e.f. 01.04.2010. 42. Inserted vide Finance Act, 2012, w.e.f. 01-07-2012 43. Substituted vide Finance Act, 2012, w.e.f. 01-07-2012, before it was read as:- Provided that 44. Substituted vide Finance Act, 2012, w.e.f. 01-07-2012, before it was read as:- ( a ) buyer means a person who obtains in any sale, by way of auction, tender or any other mode, goods of the nature specified in the Table in sub-section (1) or the right to receive any such goods but does not include,- 35 [( i ) a public sector company, the Central Government, a State Government, and an embassy, a high commission, legation, commission, consulate and the trade representation, of a foreign State and a club; or ( ii ) a buyer in the retail sale of such goods purchased by him for personal consumption;] 45. Omitted vide the Finance Act 2013 w.e.f. 1st day of June, 2013 , before it was read as, (excluding any coin or any other article weighing ten grams or less) 46 . Inserted vide THE FINANCE (No. 2) ACT, 2014 w.e.f. 1st day of June, 2013 47. Inserted vide THE FINANCE ACT, 2015 w.e.f. 1st day of June, 2015 48. Inserted vide THE FINANCE ACT, 2016 w.e.f. 1st day of June, 2016 49.Substituted vide THE FINANCE ACT, 2016 w.e.f. 1st day of June, 2016, before it was read as rupees. 50.Inserted vide THE FINANCE ACT, 2016 w.e.f. 1st day of June, 2016 51.Inserted vide THE FINANCE ACT, 2016 w.e.f. 1st day of June, 2016 52.Inserted vide THE FINANCE ACT, 2016 w.e.f. 1st day of June, 2016 53.Inserted vide THE FINANCE ACT, 2016 w.e.f. 1st day of June, 2016 54. Omitted vide THE FINANCE ACT, 2017 w.e.f. 1st day of April, 2017. before it was read as, 42 [ (1D) Every person, being a seller, who receives any amount in cash as consideration for sale of bullion 45 [***] or jewellery, 48 [or any other goods (other than bullion or jewellery) or providing any service] shall, at the time of receipt of such amount in cash, collect from the buyer, a sum equal to one per cent of sale consideration as income-tax, if such consideration,- ( i ) for bullion, exceeds two hundred thousand rupees; or ( ii ) for jewellery, exceeds five hundred thousand 49 [rupees; or]. ] 50 [ (iii) for any goods, other than those referred to in clauses (i) and (ii), or any service, exceeds two hundred thousand rupees: Provided that no tax shall be collected at source under this subsection on any amount on which tax has been deducted by the payer under Chapter XVII-B. ] (1E) Nothing contained in sub-section (1D) in relation to sale of any goods (other than bullion or jewellery) or providing any service shall apply to such class of buyers who fulfil such conditions, as may be prescribed. 55. Omitted vide THE FINANCE ACT, 2017 w.e.f. 1st day of April, 2017. before it was read as, 42 [ or sub-section (1D) ] 56. Omitted vide THE FINANCE ACT, 2017 w.e.f. 1st day of April, 2017. before it was read as, , other than a person referred to in sub-section (1D), 57. Omitted vide THE FINANCE ACT, 2017 w.e.f. 1st day of April, 2017. before it was read as, , other than a person referred to in sub-section (ID), 58. Omitted vide THE FINANCE ACT, 2017 w.e.f. 1st day of April, 2017. before it was read as, ( ii ) sub-section (1D) 52 [or sub-section (1F)] means a person who obtains in any sale, goods of the nature specified in the said sub-section; 59. Inserted vide THE FINANCE ACT, 2017 w.e.f. 1st day of April, 2017 60. Omitted vide THE FINANCE ACT, 2017 w.e.f. 1st day of April, 2017. before it was read as, ( ab ) jewellery shall have the meaning assigned to it in the Explanation to sub-clause ( ii ) of clause ( 14 ) of section 2. ] 61. Omitted vide THE FINANCE ACT, 2017 w.e.f. 1st day of April, 2017. before it was read as, 42 [ or sub-section (1D) ] are sold 53 [or services referred to in sub-section (1D) are provided] 62. Inserted vide Finance Act, 2020 dated 27-03-2020 w.e.f. 01-10-2020 63. Substituted vide Finance Act, 2020 dated 27-03-2020 w.e.f. 01-10-2020 before it was read as sub-section (1) 8 [or sub-section (1C) 64. Substituted vide Finance Act, 2020 dated 27-03-2020 w.e.f. 01-10-2020 before it was read as sub-section (1) 9 [or sub-section (1C) 65.Substituted vide Finance Act, 2020 dated 27-03-2020 w.e.f. 01-10-2020 before it was read as in accordance with the provisions of this section 66. Substituted vide Finance Act, 2020 dated 27-03-2020 w.e.f. 01-10-2020 before it was read as means 67. Substituted vide Finance Act, 2020 dated 27-03-2020 w.e.f. 01-10-2020 before it was read as the monetary limits specified under clause ( a ) or clause ( b ) of section 44AB 68. Inserted vide THE TAXATION AND OTHER LAWS (RELAXATION AND AMENDMENT OF CERTAIN PROVISIONS) ACT, 2020 dated 29-09-2020 w.e.f. 14-05-2020 69. Inserted vide Finance Act, 2022 w.e.f. 01-04-2022 70. Omitted vide THE FINANCE ACT, 2023 dated 31-03-2023 w.e.f. 01-07-2023 before it was read as, out of India 71. Substituted vide THE FINANCE ACT, 2023 dated 31-03-2023 w.e.f. 01-07-2023 before it was read as, five 72. Substituted vide THE FINANCE ACT, 2023 dated 31-03-2023 w.e.f. 01-07-2023 before it was read as, and is for a purpose other than purchase of overseas tour programme package 73. Substituted vide THE FINANCE ACT, 2023 dated 31-03-2023 w.e.f. 01-07-2023 before it was read as, is for a purpose other than purchase of overseas tour programme package 74. Substituted vide THE FINANCE ACT, 2024 dated 15-02-2024 w.e.f. 01-07-2023 before it was read as, 71 [ twenty ] 75. Omitted vide THE FINANCE ACT, 2024 dated 15-02-2024 w.e.f. 01-07-2023 before it was read as, 72 [ and is for the purposes of education or medical treatment ] 76. Substituted vide THE FINANCE ACT, 2024 dated 15-02-2024 w.e.f. 01-10-2023 before it was read as, five 77. Substituted vide THE FINANCE ACT, 2024 dated 15-02-2024 w.e.f. 01-10-2023 before it was read as, is for the purposes of 78. Inserted vide THE FINANCE ACT, 2024 dated 15-02-2024 w.e.f. 01-10-2023 79. Inserted vide THE FINANCE ACT, 2024 dated 15-02-2024 w.e.f. 01-07-2023 80. Substituted vide Section 70 of the Finance (No. 2) Act, 2024 dated 16-08-2024 w.e.f. 01-01-2025 before it was read as, (1F) Every person, being a seller, who receives any amount as consideration for sale of a motor vehicle of the value exceeding ten lakh rupees, shall, at the time of receipt of such amount, collect from the buyer, a sum equal to one per cent. of the sale consideration as income-tax. 81. Inserted vide Section 70 of the Finance (No. 2) Act, 2024 dated 16-08-2024 w.e.f. 01-04-2025 82. Inserted vide Section 70 of the Finance (No. 2) Act, 2024 dated 16-08-2024 w.e.f. 01-01-2025 83. Substituted vide Section 70 of the Finance (No. 2) Act, 2024 dated 16-08-2024 w.e.f. 01-04-2025 before it was read as, interest at the rate of 26 [one] per cent per month or part thereof on the amount of such tax from the date on which such tax was collectible to the date on which the tax was actually paid 27 [and such interest shall be paid 84. Inserted vide Section 70 of the Finance (No. 2) Act, 2024 dated 16-08-2024 w.e.f. 01-04-2025 85. Substituted vide Section 70 of the Finance (No. 2) Act, 2024 dated 16-08-2024 w.e.f. 01-10-2024 before it was read as, sub-section (1) 31 [or sub-section (1C) sub-section (1) 33 [or sub-section (1C) 86. Inserted vide Section 70 of the Finance (No. 2) Act, 2024 dated 16-08-2024 w.e.f. 01-10-2024