Tax liability as buying car of 16 lakhs with Kisan credit & savings


I am a farmer and wants to buy a car of 16lakh on cash Is there any issue from income tax department? If i pay 9 lakh from kisan credit card and 7 lakh from my savings account


Answers (1)

As per the latest CBDT circular no. 22 of 2016 a tax collected at source (TCS) at the rate 1% will be levied on on sale consideration of a motor vehicle exceeding ten lakh rupees. As per section 206C(1 D) , tax is to be collected at source at the rate of 1 % if
sale consideration received in cash exceeds 2 lakh rupees whereas as per section 206C(1F) tax is to be collected at source at the rate of 1 % of the sale consideration of a motor vehicle exceeding 10 lakh rupees. Since the value of the the car that you are purchasing is Rs. 16 Lakh you will have to pay an additional tax of Rs. 16,000/- on the same. For any further query you can contact me.
Thank You.


Googling your legal issue online?

The internet is not a lawyer and neither are you.
Talk to a real lawyer about your legal issue.

Popular Tax Lawyers

Advocate Shikhar Khare
Jangpura Extension, Delhi
6 years Experience
Advocate Barkha Bhalla
Banjara Hills, Hyderabad
16 years Experience
Advocate Rohit Ranjan Sinha
Pur Pundag, Ranchi
11 years Experience
Advocate Rovena David
Vimanapura, Bangalore
10 years Experience

Related Articles


"LawRato.com has handpicked some of the best Legal Experts in the country to help you get practical Legal Advice & help."

Disclaimer: The above query and its response is NOT a legal opinion in any way whatsoever as this is based on the information shared by the person posting the query at LawRato.com and has been responded by one of the Tax Lawyers at LawRato.com to address the specific facts and details. You may post your specific query based on your facts and details to get a response from one of the Lawyers at LawRato.com or book a Detailed Consultation with a Lawyer of your choice to address your query in detail.

Similar questions

I lost my job in November (company asked me to resign immediately) and was given a lump-sum amount as settlement amount (2 months salary,i.e dec & jan…

Read More

I need help and advice from you regarding the income tax. am working from last 3 years. Till now i dint paid tax, because of low salary limit. i.e 15k…

Read More

Me and my family had shifted to my grandfather home 6 months before where my uncle lives. Should we have to pay the electricity tax,house tax and wate…

Read More

I am a working married Hidu woman aged 42.My father bought some NSCs and Kisan Vikas Patra where in some of them my status is of joint depositor and i…

Read More

Talk to a lawyer for your legal issue