FINANCE BILL, 2013 (2013-14) - CLARIFICATION ON AMENDMENT TO SECTION 206 - C OF INCOME-TAX ACT DEALING WITH TAX COLLECTION AT SOURCE (TCS) ON SALE OF BULLION OR JEWELLERY IN CASH
Currently, sale in cash of bullion (excluding coin or / any other article weighing 10 grams or / less) in excess of Rs.2 lakh or / jewellery in excess of Rs. 5 lakh is subject to Tax Collection at Source (TCS) at 1%.
As coins were neither included in bullion nor in jewellery, therefore, coins, even when amounting to more than Rs. 2 lakh in value, were being sold in cash without TCS.
The Finance Bill, 2013 proposes to delete exclusion of coins / articles weighing 10 grams or less from bullion. Hence, the sale of bullion (including coins / articles) in cash in excess of Rs.2 lakh shall be subject to TCS at 1 %. Similarly, sale of jewellery in cash in excess of Rs. 5 lakh shall be subject to TCS at 1%.
It is not a new levy of tax but continuation of old levy except withdrawal of exemption in the case of coins or / articles weighing 10 grams or / less.
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