RBI exempted from TCS u/s 206C(1F) on purchase of motor vehicle

RBI exempted from TCS u/s 206C(1F) on purchase of motor vehicle 

CBDT has exempted Reserve Bank of India from provisions of Tax Collection at Source (TCS) sub section (1F) of section 206C of Income Tax Act on purchase of motor vehicle for a value exceeding ten lakh rupees

MINISTRY OF FINANCE
(Department of Revenue)
(CENTRAL BOARD OF DIRECT TAXES)

Notification No. 115/2024

New Delhi, the 16th October, 2024

(INCOME-TAX)

S.O. 4545(E).— In exercise of the powers conferred by sub-section (12) of section 206C of the Income-tax Act, 1961 (43 of 1961), the Central Government hereby specifies that no collection of tax shall be made under sub-section (1F) of section 206C of the said Act on any payment received from the Reserve Bank of India.

2. This notification shall come into force on the date of its publication in the Official Gazette.

[F. No. 370142/21/2024-TPL]

KHUSHBOO LATHER, Under Secy

Download CBDT Notification No. 115/2024 Click Here >>

Note: under Sub-Section 1F of section 206C every person, being a seller, who receives any amount as consideration for sale of a motor vehicle of the value exceeding ten lakh rupees, shall, at the time of receipt of such amount, collect from the buyer, a sum equal to one per cent of the sale consideration as income-tax.

The said sub section has been substituted for the existing sub-section (1F) of section 206C by the Finance (No. 2) Act, 2024, w.e.f. 1-1-2025 to provide that every person, being a seller, who receives any amount as consideration for sale of-

(i) a motor vehicle; or

 (ii) any other goods, as may be specified by the Central Government by notification in the Official Gazette,

of the value exceeding ten lakh rupees, shall, at the time of receipt of such amount, collect from the buyer, a sum equal to one per cent of the sale consideration as income-tax.

Note: under Sub-Section 1F of section 206C every person, being a seller, who receives any amount as consideration for sale of a motor vehicle of the value exceeding ten lakh rupees, shall, at the time of receipt of such amount, collect from the buyer, a sum equal to one per cent of the sale consideration as income-tax.

The said sub section has been substituted for the existing sub-section (1F) of section 206C by the Finance (No. 2) Act, 2024, w.e.f. 1-1-2025 to provide that every person, being a seller, who receives any amount as consideration for sale of-
 (i) a motor vehicle; or
 (ii) any other goods, as may be specified by the Central Government by notification in the Official Gazette,
of the value exceeding ten lakh rupees, shall, at the time of receipt of such amount, collect from the buyer, a sum equal to one per cent of the sale consideration as income-tax.

• Prima facie satisfaction u/s 148 can not be a non-existing or incorrect information
• Mutual Funds to value physical Gold and Silver by using the polled spot prices
• SC allows simultaneous CIRP proceedings against principal debtor & corporate guarantor
• Merely because sales were declared for only one month, same cannot be treated as bogus
• ITAT deleted addition as method of accounting had been accepted in earlier years