⚠️ Inapplicable from 2025-04-01 — TCS on sale of goods withdrawn — Budget 2025 / Finance Act 2025
This section is shown for reference only. Do not deduct or collect under Section 206C(1H) on transactions on or after 2025-04-01.
TDS Section 206C(1H) — TCS on sale of goods (seller-side, counterpart to 194Q) — INAPPLICABLE from 1 April 2025
FY 2025-26 · Rate 0.1% (withdrawn 1 Apr 2025)
What does this section cover?
Seller with turnover > ₹10cr collected 0.1% TCS from buyer when consideration in a FY exceeded ₹50 lakh. WITHDRAWN by Finance Act 2025 effective 1 April 2025.
Why this section: WITHDRAWN — Finance Act 2025 removed TCS on sale of goods effective 1 April 2025. For FY 2025-26 onwards only buyer-side 194Q applies on goods purchases above ₹50L.
Key facts
- Threshold
- ₹50,00,000 per FY per buyer (no longer applicable from 1 Apr 2025)
- Applicable for
- FY 2025-26
- Who deducts
- Seller with turnover > ₹10 crore in preceding FY
- Paid to
- Buyer
- Statutory source
- Section 206C(1H), Income Tax Act — withdrawn by Finance Act 2025 (effective 1 April 2025)
Common terms accountants use
If your description mentions any of these, Section 206C(1H) is likely the right answer. The matcher in this tool is a keyword scorer — not an AI classifier — so cross-check borderline cases against the official CBDT TDS rate chart.
Related TDS sections
Other sections in the same series or adjacent. Useful when narrowing down between similar payment categories.
- 206C(1)TCS on sale of alcoholic liquor, scrap, minerals, timber1% (liquor, scrap, minerals) / 2.5% (timber, forest produce) / 5% (tendu leaves)
- 206C(1F)TCS on sale of motor vehicle > ₹10 lakh1%
- 206C(1G)TCS on foreign remittance (LRS) and overseas tour package20% above ₹10L (5% for education/medical; 5% for tour above ₹10L)
Need a different section?
Describe the payment in plain English — “rent of plant”, “senior citizen interest”, “NRI dividend” — and the matcher will surface the right section.
Search TDS sections →Source: curated from the CBDT TDS rate chart. Dataset snapshot: 2025-04-01. Rates can change between Finance Acts and notifications — verify before deducting.