Cash purchase of goods, services over Rs 2 lakh to attract 1% tax

NEW DELHI: Payment in cash for buying goods and services worth more than Rs 2 lakh with the exception of jewellery will attract 1 per cent tax collected at source (TCS) from tomorrow.
The existing TCS of 1 per cent on cash purchase of over Rs 5 lakh of jewellery and over Rs 2 lakh of bullion will continue, tax officials said.
The Income Tax Department has been levying 1 per cent TCS on cash purchase of bullion in excess of Rs 2 lakh and jewellery in excess of Rs 5 lakh since July 1, 2012.
The position is maintained and there is no change in the position, the officials said.
Finance Minister Arun Jaitley in his Budget 2016-17 imposed TCS of one per cent on goods and services purchased in cash in excess of Rs 2 lakh.
Besides, sale of options will also attract increased Securities Transaction Tax (STT) of 0.05 per cent from tomorrow. Currently, STT is 0.017 per cent. (AGENCIES)

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