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Budget 2026: Rationalisation of Tax Collection at Source (‘TCS’)

Finance Bill, 2026 proposes revision to the rate of TCS on certain identified transactions, effective from 1st April 2026:

SI No.

Transaction

Current Provisions

Proposed Provisions

(i)

Remittance under LRS exceeding INR 10 lakhs

5% (education or medical treatment), 20% (for other purposes)

2% (education or medical treatment), 20% (for other purposes)

(ii)

Sale of overseas tour programme package

5% (upto INR 10 lakhs), 20% (exceeding INR 10 lakhs)

2% (irrespective of amount)

(iii)

Sale of Scrap

1%

2%

(iv)

Sale of Minerals (Coal, Lignite, Iron Ore)

1%

2%

(v)

Sale of Tendu Leaves

5%

2%

(vi)

Sale of alcohol liquor for human consumption

1%

2%

For detailed discussion on above topic, please feel free to connect at devadhaantu@devadhaantu.in