TCS on Sale of Goods Notification 2025 PDF

PDF Name	TCS on Sale of Goods Notification 2025
No. of Pages	4
PDF Size	0.51 MB
Language	English
PDF Category	Government
Source / Credits	incometaxindia.gov.in
Uploaded By	Krishan

TCS on Sale of Goods Notification 2025 - Summary

ln the Budget this year 2023, certain changes were announced to the system of Tax Collection at Source (TCS) on payments under the Liberalised Remittance Scheme (LRS) and on overseas tour program packages. These were to take effect from 1st July 2023.lt was also announced in March that credit card payments would be brought under the LRS. Numerous comments and suggestions were received which have been carefully considered.

Finance Act,2023 has amended sub-section (1G) of section 206C of the lncome-tax Act, 1961 (hereinafter referred to as’the Act’) to, interalia,

(i) increase the rate of Tax Collection at Source (TCS) from 5o/o to 20% for remittance under LRS as well as for purchase of overseas tour program package; and
(ii) remove the threshold of Rs 7 lakh for triggering TCS on LRS.

TCS on Sale of Goods 2025

Earlier and new TCS rates are summarised as under:-

Nature of payment (1)	Earlier rate before Finance Act,2023 (2t	New rate w.e.f 1″t October,2023 (3)
LRS for education, financed by loan from financial institution	Nil upto Rs 7 lakh 0.5% above Rs T lakh	Nil upto Rs T lakh 0.5% above Rs T lakh
LRS for Medical treatmenU education (other than financed by loan)	Nil upto Rs T lakh 5% above Rs 7 lakh	Nil upto Rs 7 lakh 5% above Rs 7 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
Purchase of Overseas tour program package	5% (without threshold)	5% till Rs 7 lakh, 20% thereafter