# The Finance Act, 2016, Section 88: Amendment of section 206C

- Act: The Finance Act, 2016
- Ministry: Ministry of Finance
- Source URL: https://indiacode.ecourtsindia.com/finance-act-2016/section/88/

## Text

Amendment of section 206C. 88. In section 206C of the Income-tax Act, with effect from the 1st day of June, 2016,— (i) | in sub-section (1D),— (A) | after the words "or jewellery", the words "or any other goods (other than bullion or jewellery) or providing any service" shall be inserted; (B) | in clause (ii), for the word "rupees.", the words "rupees; or" shall be substituted; (C) | after clause (ii), the following clause shall be inserted, namely:— "(iii) | for any goods, other than those referred to in clauses (i) and (ii), or any service, exceeds two hundred thousand rupees: Provided that no tax shall be collected at source under this sub-section on any amount on which tax has been deducted by the payer under Chapter XVII-B."; (ii) | after sub-section (1D), the following sub-sections shall be inserted, namely:— "(1E) Nothing contained in sub-section (1D) in relation to sale of any goods (other than bullion or jewellery) or providing any service shall apply to such class of buyers who fulfil such conditions, as may be prescribed. (1F) Every person, being a seller, who receives any amount as consideration for sale of a motor vehicle of the value exceeding ten lakh rupees, shall, at the time of receipt of such amount, collect from the buyer, a sum equal to one per cent of the sale consideration as income-tax."; (iii) | after sub-section (11), in the Explanation,— (A) | in clause (aa), in sub-clause (ii), after the word, brackets, figure and letter "sub-section (1D)", the words, brackets, figure and letter "or sub-section (1F)" shall be inserted; (B) | in clause (c), after the word "sold", the words, brackets, figure and letter "or services referred to in sub-section (1D) are provided" shall be inserted.

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