State the rate of tax deductible or collectible at source under the provisions of the Income-tax Act, 1961 in respect of the following transactions: Sale of motor car by an authorized dealer and the price of car is ₹ 8,9

CS Executive · Tax Laws · PYQS · December 2018
State the rate of tax deductible or collectible at source under the provisions of the Income-tax Act, 1961 in respect of the following transactions: Sale of motor car by an authorized dealer and the price of car is ₹ 8,90,000.

Answer & Explanation:

Sale of motor car is liable for Tax Collection at Source (TCS) only when sale consideration exceeds ₹10 lakhs. In this case the sale consideration is ₹8.90 lakhs i.e. less than ₹10 lakhs and therefore no TCS is attracted.

Topics: Income Tax Act, 1961

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