TCS Rate Chart as per Income-tax Act 2025 for Tax Year 2026-27:

TCS Rate Chart as per Income-tax Act 2025 for Tax Year 2026-27 As we all are aware, w.e.f. 1^st April 2026, the New Income Tax Act 2025 will be applicable, under which there are significant changes in section numbering & rearranging; hence, it's very crucial to understand the provisions in alignment with the traditional act, i.e., the Income Tax Act 1961, & if you are looking for such a comparative analysis, then this article is for you

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NEW TCS RATE CHART: (F.Y. 2026-27)

Old Section (IT Act 1961)	Nature of Collection	New Section (IT Act 2025)	PERSON	TCS Rate	Threshold / Remarks
GOODS SPECIFIED CATEGORIES (Sec 394(1))
206C(1)	Sale of Alcoholic Liquor for Human Consumption	394(1) [Sl. 1]	SELLER	2%
206C(1)	Sale of Tendu Leaves	394(1) [Sl. 2]	SELLER	2%
206C(1)	Sale of Timber obtained under Forest Lease	394(1) [Sl. 3]	SELLER	2%
206C(1)	Sale of Timber obtained by mode other than Forest Lease	394(1) [Sl. 3]	SELLER	2%
206C(1)	Sale of other Forest Produce (not timber or tendu leaves)	394(1) [Sl. 3]	SELLER	2%
206C(1)	Sale of Scrap	394(1) [Sl. 4]	SELLER	2%
206C(1)	Sale of Minerals — Coal, Lignite or Iron Ore	394(1) [Sl. 5]	SELLER	2%
LUXURY GOODS (Sale consideration exceeding threshold — Sec 394(1) [Sl. 6])
206C(1F)	Sale of Motor Vehicle	394(1) [Sl. 6.D(a)]	SELLER	1%	Threshold as notified, i.e., 10 Lakh
Notified Luxury Item	Sale of a wrist watch	394(1) [Sl. 6.D(b)]	SELLER	1%	Above threshold limit
Notified Luxury Item	Sale of Art Pieces (Antiques, Paintings, Sculpture)	394(1) [Sl. 6.D(b)]	SELLER	1%	Above threshold limit
Notified Luxury Item	Sale of Collectables (Coin, Stamp)	394(1) [Sl. 6.D(b)]	SELLER	1%	Above threshold limit
Notified Luxury Item	Sale of Yacht, Rowing Boat, Canoe, Helicopter	394(1) [Sl. 6.D(b)]	SELLER	1%	Above threshold limit
Notified Luxury Item	Sale of Pair of Sunglasses	394(1) [Sl. 6.D(b)]	SELLER	1%	Above threshold limit
Notified Luxury Item	Sale of Bag (Handbag, Purse)	394(1) [Sl. 6.D(b)]	SELLER	1%	Above threshold limit
Notified Luxury Item	Sale of Pair of Shoes	394(1) [Sl. 6.D(b)]	SELLER	1%	Above threshold limit
Notified Luxury Item	Sale of Sportswear & Equipment (Golf Kit, Ski-wear)	394(1) [Sl. 6.D(b)]	SELLER	1%	Above threshold limit
Notified Luxury Item	Sale of Home Theatre System	394(1) [Sl. 6.D(b)]	SELLER	1%	Above threshold limit
Notified Luxury Item	Sale of Horse (for racing in race clubs/polo)	394(1) [Sl. 6.D(b)]	SELLER	1%	Above threshold limit
LIBERALISED REMITTANCE SCHEME (LRS) & OVERSEAS TOURS
206C(1G)	LRS Remittance for Education / Medical Treatment (above threshold – 10 lakh)	394(1) [Sl. 7.D(a)]	Authorized Dealer	2%
206C(1G)	LRS Remittance for purposes other than Education / Medical	394(1) [Sl. 7.D(b)]	Authorized Dealer	20%	Higher rate for other LRS remittances
206C(1G)	Sale of Overseas Tour Programme Package (any operator)	394(1) [Sl. 8.D(a)]	Authorized Dealer	2%
206C(1G)	Sale of Overseas Tour Package (another category)	394(1) [Sl. 8.D(b)]	Authorized Dealer	2%
LEASING / USE RIGHTS (Section 394(1) [Sl. 9])
206C(1C)	Use of Parking Lot (business purpose, excl. mineral oil mining)	394(1) [Sl. 9]	Licensor or Lessor.	2%
206C(1C)	Use of Toll Plaza (business purpose, excl. mineral oil mining)	394(1) [Sl. 9]	Licensor or Lessor.	2%
206C(1C)	Use of Mine or Quarry (business purpose, excl. mineral oil)	394(1) [Sl. 9]	Licensor or Lessor.	2%

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PAN COMPLIANCE CHANGES: 206CC (TCS — PAN) → 397(2) Higher of 2x rate or 5%