Income TaxTCS TCS visavis Finance Bill, 2024

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The Tax Publishers Finance Act, 2024--TCS TCS Vis-a-Vis Finance Act, 2024 CA. Nisha Bhandari Via Finance Act, 2024 only few necessary amendments have been made. In recent past certain changes have been made in the rates of tax collection at source via Government Press Release, dated 28-6-2023. In order to give effect of such changes the Finance Act, 2024 has made certain amendments in sub-section (1G) of section 206C. The present write up aims at describing these amendments. 1. Historical background Section 206C of the Act provides for the collection of tax at source (TCS) on business of trading in alcohol, liquor, forest produce, scrap etc. Sub-section (1) of the said section, inter alia, provides that 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 certain goods a sum equal to specified percentage, of such amount as income-tax. In order to widen and deepen the tax net, section 206C has been amended by inserting sub-section (1G) therein from 1-10-2020 so as to levy TCS on overseas remittance under liberalised remittance scheme. Rates of tax collection under sub-section (1G) of section 206C as applicable upto 30-9-2023 were as under - SUBSCRIBE FOR FULL CONTENT

The Tax Publishers

Finance Act, 2024--TCS

TCS Vis-a-Vis Finance Act, 2024

CA. Nisha Bhandari

Via Finance Act, 2024 only few necessary amendments have been made. In recent past certain changes have been made in the rates of tax collection at source via Government Press Release, dated 28-6-2023. In order to give effect of such changes the Finance Act, 2024 has made certain amendments in sub-section (1G) of section 206C. The present write up aims at describing these amendments.

1. Historical background

Section 206C of the Act provides for the collection of tax at source (TCS) on business of trading in alcohol, liquor, forest produce, scrap etc. Sub-section (1) of the said section, inter alia, provides that 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 certain goods a sum equal to specified percentage, of such amount as income-tax.

In order to widen and deepen the tax net, section 206C has been amended by inserting sub-section (1G) therein from 1-10-2020 so as to levy TCS on overseas remittance under liberalised remittance scheme.

Rates of tax collection under sub-section (1G) of section 206C as applicable upto 30-9-2023 were as under -