2017
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Detailed explanation-1: -In case of purchase of jewellery, tax is collected by seller if the purchase amount exceeds Rs. 5 lakhs Or when any amount is paid in cash to the jeweller. TCS is applicable on the purchase of a second-hand car if its values is above Rs. 10, 00, 000.
Detailed explanation-2: -The TCS rate is fixed at 0.1% on sales exceeding Rs 50 lakh for an individual buyer. Similarly, Tax Deducted at Source (TDS) is dealt with in Section 194Q of the Income Tax Act. The buyers are required to deduct tax at source at 0.1% of the amount exceeding Rs 50 lakh when paid or credited to a resident seller.
Detailed explanation-3: -TCS rate is fixed at 0.1% on the sale consideration1 value exceeding INR 5 million for an individual buyer in the financial year. TCS will be refunded to the buyer after filing of income tax return and completion of assessment by tax authorities.
Detailed explanation-4: -How is TCS calculated under section 206C(1H)? The TCS is to be calculated on a buyer basis. The threshold limit u/s 206C(1H) is 50 lakh in a financial year. So, you have to collect 0.1% on over and above Rs 50 lakh.