TCS on Gold Purchase Calculator — Section 206C Income Tax
FY 2024–25 RulesCalculate Tax Collected at Source (TCS) on gold purchases in India under Section 206C of the Income Tax Act. Covers cash transactions above ₹2 lakh — understand your tax liability before visiting a jeweller.
TCS Calculator
TCS on Gold — Rate & Threshold Reference
| Transaction Type | Threshold | TCS Rate (with PAN) | TCS Rate (no PAN) |
|---|---|---|---|
| Cash purchase of gold / jewellery | Above ₹2,00,000 | 1% | 5% |
| Cash purchase — bullion (excluding coins) | Above ₹2,00,000 | 1% | 5% |
| Seller's aggregate turnover (206C 1H) | Receipts > ₹50L/year from one buyer | 0.1% | 1% |
| Digital / card / UPI payment | No threshold | Nil | Nil |
TCS vs TDS — What's the Difference?
TCS (Tax Collected at Source)
TCS is collected by the seller from the buyer at the time of sale. For gold: the jeweller collects 1% from you on cash purchases above ₹2L. The jeweller deposits this with the government and issues Form 27D. You can claim this as tax credit in your ITR.
TDS (Tax Deducted at Source)
TDS is deducted by the buyer/payer from payments made. In gold context, TDS applies when a business entity buys gold from a trader — not applicable to retail jewellery purchases by individuals.
SFT Reporting — Jeweller's Obligation
Jewellers must report all cash purchases of gold above ₹2 lakh per transaction in the Statement of Financial Transactions (SFT, Form 61A) filed with the income tax department by 31st May each year. The IT department cross-checks this against buyer's ITR filings.
PAN Mandatory — Rule 114B
Under Rule 114B of the Income Tax Rules, quoting PAN is mandatory for cash purchase of jewellery/bullion above ₹2 lakh. Non-compliance can attract penalties and scrutiny from the IT department.
FAQ — TCS on Gold Purchase
TCS (Tax Collected at Source) under Section 206C of the Income Tax Act applies on cash purchase of goods (including gold) above ₹2 lakh. The seller collects 1% TCS from the buyer (with PAN) or 5% (without PAN) and deposits it with the government. TCS is NOT an additional tax — it is an advance tax credit adjustable in your ITR.
TCS on gold purchase via digital mode (UPI, cards, NEFT) is not mandated under Section 206C(1F) — that section covers only cash purchases above ₹2L. However, Section 206C(1H) applies TCS at 0.1% on aggregate sales receipts above ₹50 lakh per financial year from any buyer, which may cover some bulk digital gold transactions.
Yes. TCS is credited to your Form 26AS and can be claimed as tax credit when filing your income tax return (ITR). If your annual tax liability is less than the TCS collected, you can claim a refund of the excess TCS from the IT department.
TCS applies on the payment amount at the time of each cash transaction. If total cash paid in a year exceeds ₹2 lakh, TCS applies. EMI schemes via bank (digital) generally do not attract TCS under 206C(1F).
Form 27D is the TCS certificate issued by the seller to the buyer. It is similar to Form 16A (TDS certificate). The jeweller must issue Form 27D within 15 days of filing the quarterly TCS return. Keep it for your ITR filing.
Without PAN, TCS rate doubles from 1% to 5%. Also, the income tax department may issue notice for high-value cash transactions (above ₹2L) reported under SFT (Statement of Financial Transactions) by jewellers.