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Was TCS on sale of goods (Section 206C(1H)) removed?

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Income-tax Act 2025 transition
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A CA firm
Bottom line
Yes — TCS on sale of goods over ₹50 lakh was withdrawn from 1 April 2025; only the buyer's TDS under Section 194Q now applies.

Section 206C(1H), which required sellers to collect TCS at 0.1% on sale of goods above ₹50 lakh, was withdrawn from 1 April 2025 to remove the overlap with buyer-side TDS.

Now only the buyer's TDS under Section 194Q applies on high-value purchases of goods. As a result, the old buyer-seller cross-declaration for 194Q vs 206C(1H) is no longer required.

General information for FY 2026-27 under the Income-tax Act 2025, not advice on your specific case. Verify against the latest law or ask a CA before acting.