Index
📊 TCS Rates 2026 – Complete Chart | Finance Act 2026
✅ As amended by Finance Act 2026 | Effective from 1st April 2026
Tax Collected at Source (TCS) is a crucial compliance for sellers of specified goods and services. This page provides the complete TCS rate chart under Section 206C(1) of the Income Tax Act, 1961 as amended by Finance Act 2026. Covers alcoholic liquor, tendu leaves, timber, scrap, minerals, motor vehicles, LRS remittances, overseas tour packages, parking/toll/mine/quarry leases, and exemptions.
📌 Related guides: TCS Complete Guide | Difference between TDS and TCS | TCS Return Filing (Form 27EQ)
🔥 Most Searched TCS Rates (Quick Look)
🍾 Alcoholic liquor
2% (w.e.f. 01-04-2026)
2% (w.e.f. 01-04-2026)
🌿 Tendu leaves
2% (w.e.f. 01-04-2026)
2% (w.e.f. 01-04-2026)
🪵 Timber & forest produce
2%
2%
🔩 Scrap
2% (w.e.f. 01-04-2026)
2% (w.e.f. 01-04-2026)
⛏️ Minerals (coal, lignite, iron ore)
2% (w.e.f. 01-04-2026)
2% (w.e.f. 01-04-2026)
🚗 Motor vehicle / notified goods (>₹10L)
1%
1%
💸 LRS remittance (>₹10L) – Education/Medical
2%
2%
💸 LRS remittance (>₹10L) – Other purposes
20%
20%
✈️ Overseas tour package
2% (w.e.f. 01-04-2026)
2% (w.e.f. 01-04-2026)
🅿️ Parking / Toll / Mine / Quarry lease
2%
2%
📋 TCS Rates under Section 206C(1) – Table
| Sl. No. | Nature of receipt | Person responsible | Rate of TCS (%) |
|---|---|---|---|
| 1 | Sale of alcoholic liquor for human consumption | Seller | 2% * |
| 2 | Sale of tendu leaves | Seller | 2% * |
| 3 | Sale of timber (whether under forest lease or otherwise) or any other forest produce (not being timber or tendu leaves) obtained under forest lease | Seller | 2% |
| 4 | Sale of scrap | Seller | 2% * |
| 5 | Sale of minerals – coal, lignite or iron ore | Seller | 2% * |
| 6 | Sale consideration exceeding ₹10 lakh – (a) motor vehicle; (b) any other notified goods | Seller | 1% |
| 7(a) | Remittance under LRS exceeding ₹10 lakh – for education or medical treatment | Authorised Dealer | 2% * |
| 7(b) | Remittance under LRS exceeding ₹10 lakh – for purposes other than education or medical treatment | Authorised Dealer | 20% |
| 8 | Sale of overseas tour programme package (including travel, hotel, boarding, lodging etc.) | Seller | 2% * |
| 9 | Use of parking lot / toll plaza / mine / quarry for business purposes (excluding mineral oil, petroleum, natural gas) | Licensor / Lessor | 2% |
📌 Important Notes:
- * Rates marked with * are amended by Finance Act 2026 w.e.f. 01-04-2026 (earlier 1% or 5% as applicable).
- Exemption under sub-section (2): No TCS on Sl. Nos. 1 to 5 if buyer is a resident and furnishes declaration that goods are for manufacturing/processing/producing or power generation (not for trading).
- Exemption under sub-section (4): No TCS on LRS remittance if the amount is a loan from a financial institution for education, or if TCS already collected on overseas tour package.
- Exemption under sub-section (5): No TCS on LRS or overseas tour package if buyer is liable to deduct TDS under any other provision and has deducted such TDS.
- TCS is collected at the time of debiting the buyer's account or receipt of payment, whichever is earlier.
❓ Frequently Asked Questions on TCS
Q1: What is the TCS rate on sale of scrap w.e.f. 01-04-2026?
2% (increased from 1% by Finance Act 2026).
2% (increased from 1% by Finance Act 2026).
Q2: Is TCS applicable on sale of motor vehicle?
Yes, 1% on consideration exceeding ₹10 lakh.
Yes, 1% on consideration exceeding ₹10 lakh.
Q3: What is the TCS rate on LRS remittance for education?
2% on amount exceeding ₹10 lakh (if not financed by educational loan from a financial institution).
2% on amount exceeding ₹10 lakh (if not financed by educational loan from a financial institution).
Q4: Is there any exemption from TCS for manufacturing buyers?
Yes, under Section 206C(2), if buyer gives declaration that goods are for manufacturing/processing/power generation (not trading).
Yes, under Section 206C(2), if buyer gives declaration that goods are for manufacturing/processing/power generation (not trading).
Q5: What is the TCS rate on overseas tour package?
2% w.e.f. 01-04-2026 (previously 5% up to ₹10L and 20% above).
2% w.e.f. 01-04-2026 (previously 5% up to ₹10L and 20% above).
Q6: Who is liable to collect TCS on parking lot or toll plaza?
Licensor or lessor – rate 2%.
Licensor or lessor – rate 2%.
Q7: What is the penalty for non-collection of TCS?
Under Section 271CA, penalty equal to the amount of TCS not collected.
Under Section 271CA, penalty equal to the amount of TCS not collected.
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