⚠️ General estimates only. Verify on incometax.gov.in & consult CA. Full Disclaimer →

Calculate TCS Amount

Select the type of transaction to auto-fill the applicable TCS rate
Enter the total sale or remittance amount
Rate doubles if PAN/Aadhaar is not furnished by buyer
Required for Section 206C(1H) — TCS applies only on amount exceeding ₹50 lakh threshold

TCS Calculation Result

Transaction Type
Transaction Amount
TCS Rate Applied
Taxable Base
TCS to Collect from Buyer
₹0

⚠️ Estimate only. TCS must be deposited by the 7th of the following month via Challan 281. File quarterly returns in Form 27EQ. Issue TCS certificate (Form 27D) to buyer. Always verify with incometax.gov.in and your CA.

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TCS Rate Chart FY 2025-26 (Section 206C)

All rates below are with valid PAN. Rate doubles if buyer does not furnish PAN/Aadhaar.

Nature of Transaction Section Threshold TCS Rate
Sale of scrap 206C(1) No threshold 1%
Timber from forest lease 206C(1) No threshold 2.5%
Timber (other) 206C(1) No threshold 2.5%
Other forest produce (excl. timber, tendu) 206C(1) No threshold 2.5%
Tendu leaves 206C(1) No threshold 5%
Minerals — coal, lignite, iron ore 206C(1) No threshold 1%
Motor vehicles (sale value > ₹10 lakh) 206C(1F) ₹10 lakh per vehicle 1%
Sale of goods (seller turnover > ₹10 Cr) 206C(1H) ₹50 lakh aggregate per buyer per FY 0.1%
LRS — general (investments, gifts, travel, education self-funded) 206C(1G) ₹7 lakh per FY (on amount above threshold) 20%
LRS — education (approved financial institution loan) 206C(1G) ₹7 lakh per FY 0.5%
LRS — medical treatment abroad 206C(1G) ₹7 lakh per FY 5%
Overseas tour packages 206C(1G) No threshold 20%

💡 Key TCS Compliance Points — FY 2025-26

Frequently Asked Questions

What is TCS under Section 206C? +
TCS (Tax Collected at Source) under Section 206C of the Income Tax Act is a tax that the seller collects from the buyer on top of the sale price for certain specified goods and services. The seller then deposits this with the government. The buyer gets credit for TCS paid when filing their Income Tax Return (ITR) — it reduces their net tax liability.
What is the TCS rate on scrap in FY 2025-26? +
The TCS rate on sale of scrap is 1% under Section 206C(1). There is no minimum threshold — TCS applies on every rupee of scrap sold. If the buyer does not furnish PAN or Aadhaar, the rate doubles to 2%.
When does TCS apply on motor vehicles? +
Under Section 206C(1F), TCS at 1% applies when a motor vehicle is sold at a price exceeding ₹10 lakh. This is per vehicle, per transaction. The seller of the vehicle must collect 1% TCS from the buyer on the full sale value.
What is Section 206C(1H) — TCS on sale of goods above ₹50 lakh? +
Under Section 206C(1H), a seller whose turnover exceeded ₹10 crore in the previous financial year must collect TCS at 0.1% on the amount received from a buyer exceeding ₹50 lakh in a financial year. Important: If the buyer is already deducting TDS on the same transaction, TCS under 206C(1H) does NOT apply — to avoid double taxation.
What is the TCS rate on LRS (foreign remittance) in 2025-26? +
Under Section 206C(1G), TCS on LRS is 20% on the amount remitted above ₹7 lakh per financial year for most purposes (investments, gifts, travel, education self-funded). Exceptions: 0.5% for education funded through an approved financial institution loan; 5% for medical treatment abroad. For overseas tour packages sold by a tour operator, TCS is 20% with no threshold.
Is TCS the same as TDS? What is the difference? +
No, TCS and TDS are different mechanisms:

TDS — the buyer/payer deducts tax from the payment before paying the seller. The seller receives a lower amount.

TCS — the seller collects tax from the buyer on top of the sale price. The buyer pays more than the sale price.

Both are credited in the payer's/buyer's Form 26AS and can be claimed against income tax liability in the ITR.
How to claim TCS credit as a buyer? +
TCS collected from you by the seller automatically appears in your Form 26AS and Annual Information Statement (AIS) on the Income Tax portal. When filing your ITR, enter the TCS amount under the tax credits section. It reduces your net income tax payable. If TCS collected exceeds your total tax liability, you get a refund from the Income Tax Department.
What is the due date to deposit TCS and file TCS returns? +
Deposit: TCS collected in a month must be deposited via Challan 281 by the 7th of the following month. Exception: TCS collected in March must be deposited by 30th April.

Quarterly return (Form 27EQ): Filed within 15 days of end of each quarter (Q1: 15 July, Q2: 15 Oct, Q3: 15 Jan, Q4: 15 May).

TCS Certificate (Form 27D): Issued to buyer within 15 days of filing Form 27EQ.

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