- June 23, 2026
- Posted by: Amit Mundhra CA
- Category: Income Tax
From 1 April 2026, New TCS Challan Codes FY 2026-27 were introduced in Section 394 of the Income Tax Act 2025. The challan now uses new numeric payment codes from 1068 to 1092 instead of sub-section references like 206C(1) or 206C(1F). This article gives you the complete list of new TCS challan codes with the old section reference, statutory description, rate, threshold, and new section reference — so you can select the right code at the challan screen without confusion.
Key Takeaways
- New TCS challan codes range from 1068 to 1092 under Section 394 of the Income Tax Act 2025, replacing old Section 206C and its sub-sections with effect from 1 April 2026
- TCS is now reported in Form 143, which replaces old Form 27EQ; update all compliance templates accordingly
- Codes 1076 to 1085 are new TCS obligations on luxury goods with no equivalent in the old Act — sellers of wrist watches, art pieces, yachts, sunglasses, bags, shoes, sportswear, home theatre systems, and polo horses must check applicability immediately
- For motor vehicles, the threshold applies per transaction; for all other TCS categories, the threshold is computed per buyer-seller pair for the full financial year
- If a buyer does not furnish a valid PAN or Aadhaar, TCS must be collected at the higher of twice the applicable rate, 5%, or 20% under Section 397(2)
What are the new TCS challan codes FY 2026-27 and why did they change?
From 1 April 2026, old TCS sub-section references like 206C(1), 206C(1C), 206C(1F), and 206C(1G) are replaced by numeric payment codes from 1068 to 1092 under Section 394 of the Income Tax Act 2025. The rates and thresholds remain largely unchanged for existing categories. What changed is the code used on the challan and in TCS returns. If your billing or ERP system still references old 206C sub-sections for collections made after 1 April 2026, your return will not match at TRACES and you will receive a demand notice.
How to use the new TCS challan codes on the income tax portal
On the income tax portal, select “Income Tax Act 2025” and Tax Year 2026-27. The “Description” dropdown will show the new TCS payment codes — select the one matching your collection type. For multiple collection types, enter each code separately with its own amount. The portal dropdown is the authoritative source — always verify there before finalising.
Timing note: for amounts received or debited on or before 31 March 2026, old Section 206C and its sub-sections continue to apply even if deposit is made after 1 April 2026. The new TCS challan codes apply only where the collection event occurred on or after 1 April 2026.
Complete list of new TCS challan codes FY 2026-27 — Codes 1068 to 1092
The new TCS challan codes are divided below into three segments based on the nature of the seller and transaction type.
Goods and natural resources — new TCS challan codes for traders, miners, and forest produce sellers
These are the oldest TCS provisions carrying forward from the old Act. Rates for scrap and alcoholic liquor have been revised upward to 2% under the new Act.
| Code | Old section | What this covers | New section reference | Rate | Threshold |
|---|---|---|---|---|---|
| 1068 | 206C-A | Sale of alcoholic liquor for human consumption | Sec 394(1) Table 1 Sl. No. 1 | 2% | Per buyer-seller pair per year |
| 1069 | 206C-I | Sale of tendu leaves | Sec 394(1) Table 1 Sl. No. 2 | 2% | Per buyer-seller pair per year |
| 1070 | 206C-B | Sale of timber obtained under a forest lease | Sec 394(1) Table 1 Sl. No. 3 | 2% | Per buyer-seller pair per year |
| 1071 | 206C-C | Sale of timber obtained by any mode other than a forest lease | Sec 394(1) Table 1 Sl. No. 3 | 2% | Per buyer-seller pair per year |
| 1072 | 206C-D | Sale of any other forest produce other than timber or tendu leaves obtained under a forest lease | Sec 394(1) Table 1 Sl. No. 3 | 2% | Per buyer-seller pair per year |
| 1073 | 206C-E | Sale of scrap | Sec 394(1) Table 1 Sl. No. 4 | 2% | Per buyer-seller pair per year |
| 1074 | 206C-J | Sale of coal, lignite, or iron ore | Sec 394(1) Table 1 Sl. No. 5 | 2% | Per buyer-seller pair per year |
Motor vehicles and luxury goods — new TCS challan codes for vehicle dealers and high-value sellers
Code 1075 for motor vehicles has been in the old Act since 2016. Codes 1076 to 1085 are entirely new TCS obligations introduced under the Income Tax Act 2025 with no equivalent in the old law.
| Code | Old section | What this covers | New section reference | Rate | Threshold |
|---|---|---|---|---|---|
| 1075 | 206C-L | Sale of motor vehicle | Sec 394(1) Table 1 Sl. No. 6.D(a) | 1% | Rs. 10,00,000 per transaction |
| 1076 | New — no old equivalent | Sale of wrist watch where consideration exceeds threshold | Sec 394(1) Table 1 Sl. No. 6.D(b) | 1% | Rs. 10,00,000 per transaction |
| 1077 | New — no old equivalent | Sale of art piece, antique, painting, or sculpture where consideration exceeds threshold | Sec 394(1) Table 1 Sl. No. 6.D(b) | 1% | Rs. 10,00,000 per transaction |
| 1078 | New — no old equivalent | Sale of collectibles such as coin or stamp where consideration exceeds threshold | Sec 394(1) Table 1 Sl. No. 6.D(b) | 1% | Rs. 10,00,000 per transaction |
| 1079 | New — no old equivalent | Sale of yacht, rowing boat, canoe, or helicopter where consideration exceeds threshold | Sec 394(1) Table 1 Sl. No. 6.D(b) | 1% | Rs. 10,00,000 per transaction |
| 1080 | New — no old equivalent | Sale of pair of sunglasses where consideration exceeds threshold | Sec 394(1) Table 1 Sl. No. 6.D(b) | 1% | Rs. 10,00,000 per transaction |
| 1081 | New — no old equivalent | Sale of handbag or purse where consideration exceeds threshold | Sec 394(1) Table 1 Sl. No. 6.D(b) | 1% | Rs. 10,00,000 per transaction |
| 1082 | New — no old equivalent | Sale of pair of shoes where consideration exceeds threshold | Sec 394(1) Table 1 Sl. No. 6.D(b) | 1% | Rs. 10,00,000 per transaction |
| 1083 | New — no old equivalent | Sale of sportswear or equipment such as golf kit or ski-wear where consideration exceeds threshold | Sec 394(1) Table 1 Sl. No. 6.D(b) | 1% | Rs. 10,00,000 per transaction |
| 1084 | New — no old equivalent | Sale of home theatre system where consideration exceeds threshold | Sec 394(1) Table 1 Sl. No. 6.D(b) | 1% | Rs. 10,00,000 per transaction |
| 1085 | New — no old equivalent | Sale of horse for horse racing in race clubs or for polo where consideration exceeds threshold | Sec 394(1) Table 1 Sl. No. 6.D(b) | 1% | Rs. 10,00,000 per transaction |
Note on luxury goods codes 1076 to 1085: The threshold of Rs. 10,00,000 is subject to official CBDT notification for each luxury goods category. Verify the current notification before collecting TCS under these codes.
LRS remittances, overseas tour packages, and business use — new TCS challan codes for authorised dealers and businesses
| Code | Old section | What this covers | New section reference | Rate | Threshold |
|---|---|---|---|---|---|
| 1086 | 206C-T | Remittance under Liberalised Remittance Scheme exceeding threshold — for education or medical treatment | Sec 394(1) Table 1 Sl. No. 7.D(a) | 2% | As notified |
| 1087 | 206C-Q | Remittance under Liberalised Remittance Scheme exceeding threshold — for any other purpose | Sec 394(1) Table 1 Sl. No. 7.D(b) | 20% | As notified |
| 1088 | 206C-O | Sale of overseas tour programme package including travel, hotel stay, boarding, or lodging — amount up to Rs. 10,00,000 | Sec 394(1) Table 1 Sl. No. 8.D(a) | 2% | Per buyer per year |
| 1089 | 206C-O | Sale of overseas tour programme package including travel, hotel stay, boarding, or lodging — amount exceeds Rs. 10,00,000 | Sec 394(1) Table 1 Sl. No. 8.D(b) | 2% | Per buyer per year |
| 1090 | 206C-F | Use of parking lot for business purposes excluding mineral oil mining | Sec 394(1) Table 1 Sl. No. 9 | 2% | Per buyer-seller pair per year |
| 1091 | 206C-G | Use of toll plaza for business purposes excluding mineral oil mining | Sec 394(1) Table 1 Sl. No. 9 | 2% | Per buyer-seller pair per year |
| 1092 | 206C-H | Use of mine or quarry for business purposes excluding mineral oil mining | Sec 394(1) Table 1 Sl. No. 9 | 2% | Per buyer-seller pair per year |
What is new in TCS from 1 April 2026 — key changes every collector must know
New TCS on luxury goods (codes 1076 to 1085):
This is the most significant new TCS provision under the Income Tax Act 2025. Sellers of wrist watches, art pieces, antiques, collectibles, yachts, helicopters, sunglasses, bags, shoes, sportswear, home theatre systems, and polo horses must collect TCS at 1% where the sale consideration exceeds the notified threshold. These obligations have no equivalent in the old Act. If you sell any of these items, verify whether CBDT has issued the applicable notification and update your billing system accordingly.
TCS return form has changed:
Old Form 27EQ is replaced by Form 143 for quarterly TCS returns. Any return filed in Form 27EQ for Tax Year 2026-27 collections will be non-compliant. Update your TCS software before filing the Q1 return due by 31 July 2026.
Rates for certain categories revised to 2%:
The TCS rate for sale of scrap, alcoholic liquor, and several other categories has been revised. All categories under the new Act carry a flat 2% for natural resources and goods, simplifying rate lookup compared to the old Act’s varying rates.
Frequently asked questions on new TCS challan codes
What are the new TCS challan codes under the Income Tax Act 2025?
The new TCS challan codes are numeric payment codes ranging from 1068 to 1092 under Section 394 of the Income Tax Act 2025. They replace old Section 206C and its sub-sections with effect from 1 April 2026. Each code corresponds to a specific entry in Section 394(1) Table 1 and must be used on the TCS challan and in quarterly TCS returns from 1 April 2026 onwards.
What is the new section replacing old Section 206C for TCS?
Old Section 206C and all its sub-sections (206C(1), 206C(1C), 206C(1F), 206C(1G)) are replaced by Section 394 of the Income Tax Act 2025 with effect from 1 April 2026. The same challan ITNS 281 is used for deposit. The new TCS challan codes run from 1068 to 1092.
Which form replaces old Form 27EQ for TCS returns?
Form 143 replaces old Form 27EQ for quarterly TCS returns under the Income Tax Act 2025. File Form 143 for all TCS collections made on or after 1 April 2026. For collections made before 1 April 2026, old Form 27EQ continues to apply even if filing is done after that date.
Are codes 1076 to 1085 on luxury goods new?
Yes. Codes 1076 to 1085 covering wrist watches, art pieces, collectibles, yachts, sunglasses, bags, shoes, sportswear, home theatre systems, and polo horses are entirely new TCS obligations with no equivalent in the old Income Tax Act 1961. These were introduced under the Income Tax Act 2025. Check the CBDT notification for the exact applicable threshold before collecting TCS under these codes.
Is the TCS threshold for motor vehicles per transaction or per year?
For motor vehicles (code 1075), the threshold of Rs. 10,00,000 applies per transaction. For all other TCS categories, the threshold is computed per buyer-seller pair for the full financial year.
What happens if the buyer does not provide PAN or Aadhaar for TCS?
TCS must be collected at the higher of twice the applicable rate, 5%, or 20% under Section 397(2) of the Income Tax Act 2025, which replaces old Section 206CC.
What is the TCS rate on LRS remittances for education or medical purposes?
Code 1086 covers LRS remittances for education or medical treatment at 2%. Code 1087 covers LRS remittances for any other purpose at 20%. Note that LRS remittances funded from a loan taken from a specified financial institution attract Nil TCS.
Disclaimer: The new TCS challan codes listed in this article are based on the income tax portal dropdown as available in June 2026 and the Income Tax Act 2025. The portal dropdown is the authoritative source for code selection. Karnani and Co. accepts no liability for errors arising from changes made by the Income Tax Department to the portal after the date of publication.
For guidance on TCS applicability or a compliance review for your business, contact Karnani and Co., Chartered Accountants, Jaipur at Contact Us.
Also Read
New TDS Challan Codes FY 2026-27 – Complete List with Old Section Reference (Codes 1001 to 1067)
