Gold coins of 10gm will also attract TCS at 1%

The government today said sale in cash of coin or any other article weighing 10 grams or less would also attract at Tax Collection at Source (TCS) at 1%.

The levy will apply from June 1.  

Currently, sale in cash of bullion in excess of Rs 2 lakh or jewellery in excess of Rs 5 lakh is subject to TCS.

As coins were neither included in bullion nor in jewellery, therefore, coins, even when amounting to more than Rs 2 lakh in value, were being sold in cash without TCS.

In a statement, the finance ministry clarified that the provisions in the Finance Bill pertained only to withdrawal of exemption in the case coins/articles weighing 10 grams or less and did not amount to a new tax on bullion.

“Hence, the sale of bullion (including coins/articles) in cash in excess of Rs 2 lakh shall be subject to TCS at 1%. Similarly, sale of jewellery in cash in excess of Rs 5 lakh shall be subject to TCS at 1%,” it said in a clarification on amendments to the Finance Bill.