TCS on Sale of Goods Notification 2024
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 2024
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 |
For more details download the TCS on Sale of Goods Notification in PDF format using the link given below.
