Section 206C of the Income-tax Act, 1961 (hereafter referred to as ‘Act’), prior to amendment by Finance Act, 2016. provided that the seller shall collect tax at source at specified rate from the buyer at the time of sale of specified items such as alcoholic liquor [or human consumption, tender leaves, mineral being coal or lignite or iron orc etc. It also provided for collection of tax at source at the rate of one per cent on sale in cash of bullion exceeding 2 lakh rupees and jewellery exceeding 5 lakh rupees.
Click here to download amendment in Section 206C vide Finance Act 2016
