Section 206C → Section 241
Tax Collection at Source (TCS) on Scrap, Timber, etc.
Quick Answer
Section 206C of the Income Tax Act, 1961 (Tax Collection at Source (TCS) on Scrap, Timber, etc.) corresponds to Section 241 of the Direct Tax Code 2025 (Income-tax Act, 2025), effective 1st April 2026. Status: Retained.
Sec 206C
Provision Summary
Mandates the seller to collect tax from the buyer at the time of sale for specific items like Scrap, Tendu leaves, Timber.
Sec 241
Provision Summary
Retained. Historically the first TCS provision in India.
Key Changes & Highlights
- None.
Related Articles from the Tax Academy
foreign remittance
LRS TCS Changes: Your Guide to the New 2026 Tax Rules
A professional guide to the new 2% TCS on foreign remittances for education & medical under the Direct Tax Code 2025. Learn how to adjust TCS against your tax liability.
foreign remittance
LRS TCS in ITR-2: A Guide for Tax Year 2026 Under New Tax Code
Complete compliance guide for adjusting LRS TCS in ITR-2 under the new Direct Tax Code 2025. Learn about new rates, thresholds, and how to claim refunds.
foreign remittance
LRS ₹10 Lakh Exemption: New 2025 Tax Rules for Foreign Remittance
Expert guide on the new TCS rules for foreign remittance under Direct Tax Code 2025. Understand the increased ₹10 Lakh LRS exemption limit, revised TCS rates, and ITR impact.
foreign remittance
Federal Bank NRE Account & Remittance Tax Rules for 2026
Your expert guide to Indian tax laws for 2026. Understand the rules for Federal Bank NRE accounts, new 20% TCS on foreign remittance, and how to claim refunds.
foreign remittance
0% TCS on Foreign Study Loans: A Guide for Tax Year 2026
Complete guide on the new 0% TCS rule for foreign education loans for tax year 2026. Learn about eligibility, thresholds for self-funded remittance, and how to claim refunds.
foreign remittance
TCS on Education Remittance 2026: Claiming Refunds Under New Tax Code
A complete guide on the new 2% TCS rate for education remittances under the Direct Tax Code 2025. Learn how to claim refunds by matching Form 26AS and filing your ITR.
Frequently Asked Questions
What does Section 206C of the Income Tax Act 1961 deal with?
Section 206C (Tax Collection at Source (TCS) on Scrap, Timber, etc.) Mandates the seller to collect tax from the buyer at the time of sale for specific items like Scrap, Tendu leaves, Timber.
What is the new section number for Section 206C under the Direct Tax Code 2025?
Section 206C of the ITA 1961 maps to Section 241 of the Direct Tax Code 2025 (Income-tax Act, 2025), effective from 1st April 2026.
What is the status of Section 206C under the new tax code?
Section 206C is marked as "Retained" with status "Active". Impact: Medium - Important for manufacturing and trading businesses.
What are the key changes to Section 206C under DTC 2025?
None.
Disclaimer: This page is for educational and reference purposes only. Section mappings are based on publicly available drafts and circulars. Always consult a qualified Chartered Accountant before filing or making compliance decisions under the Direct Tax Code 2025.
Need professional help on Section 206C?
Compare trusted providers — both offer DTC 2025-ready CA services.
*Affiliate links — we may earn a small commission at no extra cost to you. Disclosure.
Want to calculate tax on this section?