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 Income-tax Act, 2025, effective 1st April 2026. Status: Retained.
What changed for Section 206C
The starting point is Section 206C of the Income Tax Act, 1961 — 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.
From 1st April 2026, the same subject sits at Section 241 of the Income-tax Act, 2025 — retained and renumbered as Section 241 of the Income-tax Act, 2025. Retained. Historically the first TCS provision in India.
For Section 206C, the practical impact is rated Medium. Important for manufacturing and trading businesses.
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.
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Frequently Asked Questions
What is Section 206C of the Income Tax Act, 1961 about?
Section 206C of the Income Tax Act, 1961 covers 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.
Which section replaces Section 206C in the Income-tax Act, 2025?
Section 206C of the Income Tax Act, 1961 maps to Section 241 of the Income-tax Act, 2025, effective 1st April 2026 (status: Retained). Retained. Historically the first TCS provision in India.
What is the impact of the change to Section 206C under the new tax code?
The transition impact for Section 206C is rated Medium. Important for manufacturing and trading businesses.
What should I watch out for when Section 206C moves to the 2025 code?
None. These points are specific to Section 206C (Tax Collection at Source (TCS) on Scrap, Timber, etc.).
Disclaimer: This mapping of Section 206C (Tax Collection at Source (TCS) on Scrap, Timber, etc.) to Section 241 of the Income-tax Act, 2025 is for educational and reference purposes only, based on publicly available drafts and circulars. As Section 206C is currently marked Retained, always confirm its treatment with a qualified Chartered Accountant before filing or making compliance decisions.
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