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The Union Budget 2025 changes TCS thresholds from April 1, 2025. TCS on goods sales over Rs. 50,00,000 is omitted, easing business burdens.
New changes in TCS provisions to be effective from April 01.
New TCS Changes From April 1st: The Union Budget 2025 had made a lot of upward changes in thresholds of applicability of TCS (Tax Collected At Source), and those changes shall be effective from 1st April, 2025.
CA and Advocate Kinjal Bhuta, secretary, Bombay Chartered Accountants’ Society said said for corporates, amongst others changes, the most welcome change is deletion of TCS provisions on sale of goods u/s. 206C(1H). “Presently both TDS and TCS was applicable on same transaction where transaction of purchase or sale of goods is more than 50 Lakhs, now the TCS has been deleted for sellers. It’s a big relief to businesses,” she added.
| Section No. | Income | Existing Threshold | Revised threshold w.e.f 01st April 2025 |
| 206C(1) | Profits and gains from the business of trading in alcoholic liquor, forest produce, scrap, etc –
Goods of nature as specified |
As specified |
2% (except tendu leaves) |
| Timber obtained under forest lease or by any other mode | 2.5% | ||
| Tendu leaves | |||
| 206C(1G) | Authorised dealer under LRS | Rs. 7,00,000 | Rs. 10,00,000 |
| Remittance out of loan from financial institution defined u/s 80E for educational purpose | 0.5% | No TCS | |
| 206C(1H) | Sale of goods exceeding Rs.50,00,000 | 0.1% | Omitted |
| 206C(7A) |
Sub-section (7A) of the said section provides that no order shall be made under subsection (6A) of the said section deeming a person to be an assessee in default for failure to collect the whole or any part of the tax from any person, at any time after the expiry of six years from the end of the financial year in which tax was collectible or two years from the end of the financial year in which the correction statement is delivered under sub-section (3B) of section 206C, whichever is later |
It is proposed to amend the said sub-section so as to insert a proviso to provide that the provisions of sub-sections (3), (5) and (6) of section 153 and Explanation 1 thereof shall apply to the time limit prescribed in sub-section (7A). | |
| 206CCA | Special provision for collection of tax at source for non-filers of income-tax return |
Higher of – 1.      Twice the rate or 2.      5% |
Omitted |
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