TCS Rate Change Latest Update: Income Tax Department applies 1% TCS on Rs 10 lakh-plus purchase of these items; check list

TCS latest news update, income tax latest update: If you are purchasing items worth over Rs 10 lakh, the Income Tax Department (I-T) Department has made a significant change for you! 

It has introduced a one per cent (Tax Collected at Source) that buyers need to pay on prices above one million.

The list of items where TCS will be applicable include wristwatches, antiques, paintings, and sculptures

The list also includes collectibles like coins and stamps.

The tax will also be applied on the purchase of yachts, helicopters, rowing boats, and canoes.

Other items include sunglasses, handbags, purses, shoes sportswear, equipment like golf kits, ski gear.

What is TCS?

It is the tax payable by the seller, who collects it from the buyer on the sale of an item.

Section 206C of the Income Tax Act, 1961, governs the goods on which a seller has to collect tax from their buyers. For the seller, it is must to have the Tax Collection Account Number (TAN).

TCS should be deposited with income tax authorities within the applicable due dates. 

The seller is responsible only for collecting TCS and depositing it to the government. 

The seller is not responsible for paying TCS out of their own pocket.   

Example of TCS

A sells goods worth Rs 10,000 to B on which TCS is applicable. 

A will collect TCS at a 1 per cent rate from the buyer.

So, the seller will be collecting Rs 10,100 from B (Rs 10,000 + 1 per cent of Rs 10,000)

The money so collected as TCS should be deposited to the government within the specified due dates.

The seller (A) is responsible only for collecting TCS and depositing it to the government.

They will not pay it from their own pocket.