« Top Headlines » Open DEMAT Account in 24 hrs  Income Tax Refund Delayed for AY 2026-27? 5 Common Reasons Your Refund May Be Stuck and How to Fix It  ITR Filing 2026: FM Nirmala Sitharaman Asks Tax Officials to Let Honest Taxpayers Correct Genuine Mistakes  Will Your FCNR Deposit Stay Tax-Free After Returning to India? Tax Rules Explained for NRIs  ITR Filing 2026: Section 143(1) Tax Demand Explained Reasons, Solutions, and How to Avoid Penalties & Disputes  ITR Filing 2026: Over 3 Crore Income Tax Returns Filed for AY 2026 27 Income Tax Department Urges Taxpayers to Avoid Last-Minute Rush  ITR Filing 2026: CBDT Upgrades Income Tax Portal Ahead of July 31 Deadline Key Changes Every Taxpayer Should Know  Sold house for ₹1.10 crore, tax computed on ₹1.96 crore? ITAT explains when Section 54 relief is still available  ITR 2026: How Taxpayers Earning 25 Lakh to 1 Crore Can Save Up to 1.5 Lakh Under the New Tax Regime  Old vs New Tax Regime 2026: Which Saves More Tax If You Earn 13 Lakh?   Presumptive Taxation in 2026 Rebate Losses & Deductions Practical Impact of the Income Tax Act 2025  Income Tax Penalties Explained (2026): What Happens If You Under-Report Income or Miss Your ITR Filing «  Net direct tax collections up by 41 pc... Taxability of fees for technical services... » No TDS on sale deals, says CBDT December, 18th 2006 The Central Board of Direct Taxes has clarified that tax deducted at source (TDS) will only apply to deals which are in the nature of contract for work and not those involving sale transactions.    For example, an individual who has purchased a car and subsequently given a contract to another entity for customising the vehicle for some amount would be liable to deduct 2 per cent as TDS on that particular amount.    In effect, any value addition to goods already owned by an individual by another party will attract the tax.    A revenue department official said the circular removed ambiguities that had crept up due to two different circulars - 681 and 715. The critical point is at what point the person assumes ownership of the goods, he said.    Stretching the car analogy, he said, if a person contracted a customisation agency to purchase the car on his behalf and make value additions like changing tyres, adding accessories, etc, the transaction would not attract TDS.    This is because it will be treated as a contract for sale and not a contract for work, he said. The clarification, the official added, had widespread implications.    The provisions of Section 194C would apply in respect of a contract for supply of any article or things as per prescribed specifications in this regard, he said.