Rates of Tax Collection at Source for the Financial Year 2025-26 - Income Tax - Ready Reckoner - Income Tax

Rates of Tax Collection at Source for the Financial Year 2025-26 (Rates are inclusive of Surcharge, Education Cess and Secondary Higher Education Cess) S.No. Section Particulars Resident / Non-Residents/Domestic Company 1 206C(1) Alcoholic liquor for human consumption 1% 2 206C(1) Tendu leaves 5% 3 206C(1) Timber or any other forest produce (not being tendu leaves) 2% [ From 01.04.2025 ] 4 206C(1) Timber obtained by any mode other than under a forest lease 2% [ From 01.04.2025 ] 5 206C(1) Any other forest produce not being timber or tendu leaves 2.5% [ Omitted from 01.04.2025 ] 6 206C(1) Scrap 1% 7 206C(1) Minerals, being coal or lignite or iron ore [w.e.f. 1.7.2012] 1% 8 206C(1C) Lease or license of Parking lot, toll plaza, mining quarrying 2% 9 206C(1F) Upto 31.12.2024 - Sale Value of Motor Vehicle whether in cheque or in any other mode of receipt From 01.01.2025 - Sale Value of Motor Vehicle or any other goods (specified by the Central Government by notification) whether in cheque or in any other mode of receipt. [ Substituted vide Finance (No. 2) Act, 2024 ] 1% 10 206C(1H) Sale of goods (Other than those being exported) of value exceeding Rs. 50 Lakh in previous year whose total Sale/ gross receipts / turnover from business exceeds Rs. 10 Crore during immediately financial year 0.1% (applicable from 01.10.2020) Not Applicable w.e.f. 01.04.2025 Section 206(1G) Increased TCS rates to apply from 1st October, 2023 : The increase in TCS rates; which were to come into effect from 1st July, 2023 shall now come into effect from 1st October, 2023. Till 30th September, 2023, earlier rates (prior to amendment by the Finance Act, 2023 ) shall continue to apply. [ Circular no. 10/2023 Dated 30th June 2023 ] Earlier and new TCS rates are summarised as under: Nature of payment Earlier rate before Finance Act, 2023 (w.e.f. From 1st October 2020 to September 2023) Rate from 1st October, 2023 to 31st March 2025 New rate w.e.f. 1st April, 2025 (1) (2) (3) (4) LRS for education, financed by loan from financial institution Nil upto Rs 7 lakh 0.5% above Rs 7 lakh Nil upto Rs 7 lakh 0.5% above Rs 7 lakh Nil LRS for Medical treatment/ education (other than financed by loan) Nil upto Rs 7 lakh 5% above Rs 7 lakh Nil upto Rs 7 lakh 5% above Rs 7 lakh Nil upto Rs 10 lakh 5% above Rs 10 lakh LRS for other purposes Nil upto Rs 7 lakh 5% above Rs 7 lakh Nil upto Rs 7 lakh 20% above Rs 7 lakh Nil upto Rs 10 lakh 20% above Rs 10 lakh Purchase of Overseas tour program package 5% (without threshold) 5% till Rs 7 lakh, 20% thereafter 5% till Rs 10 lakh, 20% thereafter Note :- (i) TCS rate mentioned in column 2 shall continue to apply till 30th September, 2023. (ii) There shall be no TCS on expenditure under LRS under section 206C(1G)(i) upto Rs 7 lakh, irrespective of purpose. (iii) TCS Rates shall be applicable according to under this section in following cases Note 1: TCS Rates on Non Furnishing of PAN u/s. 206CC As per section 206CC , notwithstanding anything contained in any other provisions of this Act, any person paying any sum or amount, on which tax is collectible at source under Chapter XVII-BB (herein referred to as collectee) shall furnish his Permanent Account Number to the person responsible for collecting such tax (herein referred to as collector), failing which tax shall be collected at the higher of the following rates , namely:- (i) at twice the rate specified in the relevant provision of this Act; or (ii) at the rate of five per cent. However, As per Amendment by FA, 2023, w.e.f., rate of tax collection at source under this section shall not exceed 20%. (Budget 2023, Amendment) Note 2: TCS Rates on Non Filing of ITR u/s 206CCA w.e.f 01.07.2021 2.1 TCS Rate Proposed section 206CCA of the Act would apply on any sum or amount received by a person (herein referred to as collectee) from a specified person. The proposed TCS rate in this section is higher of the following rates twice the rate specified in the relevant provision of the Act; or the rate of 5% However, As per Amendment by FA, 2023, w.e.f., rate of tax collection at source under this section shall not exceed 20%. (Budget 2023, Amendment) 2.2 TCS rate in case of Non Availability of PAN and not filing of ITR If the provision of section 206CC (i.e. PAN not available) of the Act is applicable to a specified person , in addition to the provision of this section, the tax shall be collected at higher of the two rates provided in this section and in section 206CC of the Act. 2.3 Collectee i.e. Specified Person Specified person proposes to means a person who has not furnished the return of income for assessment year relevant to the previous year immediately preceeding the financial year in which tax is required to be deducted, for which the time limit for furnishing return of Income u/s 139(1) has expired and aggregate of TDS/TCS in his case is Rs. 50,000/- or more in said previous year. [Amendment by FA, 2023 Provided that the specified person shall not include (i) a non-resident who does not have a permanent establishment in India; or (ii) a person who is not required to furnish the return of income for the assessment year relevant to the said previous year and is notified by the Central Government in the Official Gazette in this behalf. ] The amount of income-tax deducted as per the provisions of (i) item 1 of this Part, shall be increased by a surcharge Add: Surcharge / E.Cess / SHE.Cess 1. Surcharge in case of Non Resident Individual / HUF/AOP/BOI/Artificial Jurisdical Personal -10% if income exceeds Rs. 50 Lakhs but does not exceed 1 Crores -15% if income exceeds Rs. 1 Crores but does not exceed 2 crore rupees -25% if income exceeds Rs. 2 Crores but does not exceed 5 crore rupees -37% if income above Rs. 5 Crores In the case of an association of persons being a non-resident, and consisting of only companies as its members -10% if income exceeds Rs. 50 Lakhs but does not exceed 1 Crores -15% if income above Rs. 1 Crores Non resident co-operative society -7% if income exceeds Rs. 1 Crore but does not exceed 10 Crores -12% if income above Rs. 10 Crores Non resident firm -12% if income exceeds Rs. 1 Crores. - Every company other than a domestic company (i.e. Non Resident company ) -2% Surcharge in case of foreign company and amount exceeds Rs. 1 Crore to Rs. 10 Crore. -5% if income above 10 Crore 2. Cess Health and Education Cess - 4% of Income Tax