Form 26AS TCS Codes: 206CA to 206CR Explained (2026)
What 206CO, 206CE, 206CJ, 206CM, 206CN, 206CP and 206CQ mean on Form 26AS, and the Section 394 codes that replace them from 1 April 2026.
The 60-second version
The 206C codes on Form 26AS and Form 27D are reporting codes, not separate charging sections. 206CO is the overseas tour programme package or an 80E education-loan remittance under Section 206C(1G); 206CE is scrap; 206CM is a cash sale of goods; 206CN is services; 206CP and 206CQ are the LRS remittance buckets; 206CR is the newer sale-of-goods code. From 1 April 2026 Section 394 of the Income Tax Act 2025 replaces 206C, Form 143 replaces Form 27EQ, and the challan uses numeric codes 1068 to 1092 — so statements carry both generations of codes for years.
The code on your 26AS is a label, not a section
When you open Form 26AS or download a Form 27D certificate, the TCS rows carry a code like 206CO, 206CE or 206CQ. Those codes are the Income Tax Department's internal reporting labels for the different collection buckets inside Section 206C. Only one or two of them correspond to a standalone section number you would look up in the Act; the rest are sub-clauses or sub-sections wearing a four-character tag.
That is why a direct search for the code lands you on pages that contradict each other. 206CO is not liquor. It is the code for TCS on an overseas tour programme package and on remittances under the Liberalised Remittance Scheme made to repay an education loan taken from a financial institution covered by Section 80E — both charged by Section 206C(1G).
The practical reason this matters: the code tells you who should have a matching Form 27D certificate and what you can claim in Schedule TCS of your return. If you treat 206CO as a liquor-sector levy and you are not in the liquor trade, you will waste a cycle arguing about it instead of reconciling the credit.
Use the table below as the decoder. Then read how to pull the statement itself if your 26AS is empty or stale.
The 206C reporting codes on Form 26AS and Form 27D
Left column is the code exactly as it appears in the 26AS download. Right column is the provision that actually creates the charge. Where a code maps to a sub-clause, the clause is named.
| 26AS code | What it is for | Charging provision | Who is the collector |
|---|---|---|---|
| 206CA | Alcoholic liquor for human consumption | 206C(1)(a) | Seller / licensee |
| 206CB | Timber obtained under a forest lease | 206C(1)(b) | Seller / lessee |
| 206CC | Timber obtained by any mode other than a forest lease | 206C(1)(c) | Seller |
| 206CD | Forest produce other than timber or tendu leaves | 206C(1)(d) | Seller |
| 206CE | Scrap | 206C(1)(e) | Seller |
| 206CF | Parking lot — lease, licence or contract | 206C(1C) | Lessor / licensor |
| 206CG | Toll plaza — lease, licence or contract | 206C(1C) | Lessor / licensor |
| 206CH | Mine or quarry — lease, licence or contract | 206C(1C) | Lessor / licensor |
| 206CI | Tendu leaves | 206C(1) | Seller |
| 206CJ | Certain minerals (coal, lignite, iron ore) | 206C(1) | Seller |
| 206CK | Cash sale of bullion or jewellery | 206C(1D) | Seller |
| 206CL | Sale of a motor vehicle | 206C(1F) | Dealer |
| 206CM | Cash sale of goods other than bullion and jewellery | 206C(1D) | Seller |
| 206CN | Providing any services | 206C(1H) | Seller of service |
| 206CO | Overseas tour programme package, or LRS remittance repaying an 80E education loan | 206C(1G) | Tour operator / authorised dealer |
| 206CP | LRS remittance for education or medical treatment funded by an 80E loan | 206C(1G) proviso | Authorised dealer |
| 206CQ | LRS remittance for any purpose other than an overseas tour package or an 80E education loan | 206C(1G) | Authorised dealer |
| 206CR | Sale of goods, including the notified luxury goods at 1% from 22 April 2025 | 206C(1H) as substituted from 1 April 2025 | Seller |
Reconcile the code, the certificate and the credit
Do this once a year before you file, and again whenever a bank deduction takes you by surprise.
Download 26AS and the certificates together
Open Form 26AS part C and every Form 27D your collectors have issued. The code appears in both places, so the two should agree line by line.
Translate the code into the real provision
Use the decoder table above. Write the actual sub-section next to each row — for example 206CO becomes 206C(1G). That single translation resolves most 'wrong section' worries.
Check the collector had a duty to collect
Section 206C only bites on the collectors the Act names. If the payer was not one of them, the entry is more likely a reporting error than a lawful collection.
Match the amount to a transaction you recognise
Match the TCS amount and the date against the underlying invoice, remittance advice or tour booking. Unmatched lines are the ones that need a grievance, not an ITR adjustment.
Claim the credit in Schedule TCS
Report the credit in your return. If the code points to the LRS buckets, remember the credit is available in the year of collection even where the income is taxed on a different basis.
Escalate a mismatch through the grievance route
When the certificate and 26AS disagree, raise a grievance on the e-filing portal and keep a copy of the 27D. That is the evidence chain the department asks for.
26AS TCS code reconciliation checklist
Nothing here needs a professional if you work through it in order.
- Form 26AS part C downloaded for the full financial year
- Form 27D certificate from every collector that deducted TCS
- Each code translated to its 206C sub-section in one working sheet
- Collector verified as a person the Act actually requires to collect
- TCS amount matched to a real invoice, remittance or booking reference
- Credit entered in Schedule TCS of the return
- Mismatch raised as a grievance with the 27D attached
- Copy of the working sheet retained for the retention period you operate to
How to read one 26AS TCS row
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Why your 26AS carries two generations of codes
From 1 April 2026 the TCS charging provision moved. Old Section 206C of the Income-tax Act, 1961 is replaced by Section 394 of the Income Tax Act 2025, the quarterly TCS statement moves from Form 27EQ to Form 143, and the challan stops asking for a sub-section and asks for a numeric payment code between 1068 and 1092. The deposit challan itself is unchanged — still ITNS 281 — and the rate structure was simplified, with several categories moving to a flat 2%.
The collection date decides which regime applies, not the deposit date. Where the amount was received or debited on or before 31 March 2026, the old Section 206C codes continue to apply even if the tax was deposited in April. That is exactly why a Form 143 covering the June 2026 quarter can show both the legacy 206C family and the new Section 394 entries on the same statement.
Practically, the legacy codes will keep appearing for years. A deduction made in 2024-25 shows under 206CO or 206CQ on a statement you may still be reconciling in 2026. So the decoder above stays useful, and the Section 394 table below tells you what a post-April-2026 entry is pointing at.
One caution worth writing down: the numeric challan code is not the same thing as the reporting code on your 26AS. Code 1087 is a payment code an authorised dealer selects when depositing; 206CQ is the reporting tag on the statement. They describe the same remittance, in two different generations of the same system, and neither of them is the section number.
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The new Section 394 challan codes (1 April 2026 onward)
Use this when a 2026-27 collection has to be deposited or explained. The left column is what the challan screen asks for; the last column is the legacy code you will still see on an older 26AS.
| Challan code | What it covers | Rate | Legacy 26AS code |
|---|---|---|---|
| 1068 | Alcoholic liquor for human consumption | 2% | 206CA |
| 1069 | Tendu leaves | 2% | 206CI |
| 1070 - 1072 | Timber under a forest lease, timber by other modes, other forest produce | 2% | 206CB - 206CD |
| 1073 | Scrap | 2% | 206CE |
| 1074 | Coal, lignite or iron ore | 2% | 206CJ |
| 1075 | Sale of a motor vehicle | 1% | 206CL |
| 1076 - 1085 | Notified luxury goods: watches, art, collectibles, yachts and helicopters, sunglasses, bags, shoes, sportswear, home theatre, race and polo horses | 1% beyond the notified threshold | 206CR |
| 1086 | LRS remittance for education or medical treatment | 2% | 206CP |
| 1087 | LRS remittance for any other purpose | 20% | 206CQ |
| 1088 - 1089 | Overseas tour programme package | 2% | 206CO |
| 1090 - 1092 | Parking lot, toll plaza, and mine or quarry used for business | 2% | 206CF - 206CH |
206CO is not liquor
Searching a four-character code on its own returns pages that confidently assign it to the wrong item. 206CO is the most widely mispublished of the set: it is the overseas tour programme package and 80E education-loan bucket of Section 206C(1G), not a liquor provision — liquor is 206CA. Read the code, then read the sub-section it maps to in the table above, and treat the second one as the law.
The one-sentence answer
The 206C codes on Form 26AS are reporting labels: find the sub-section each one maps to, match the entry to a real transaction, then claim the credit in Schedule TCS.
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Look up a code from your 26AS
Type the four-character code you see on Form 26AS or the collector’s certificate, or a word like “scrap”, “remittance” or “luxury”.
18 of 18 codes
| Code | What it covers | Provision |
|---|---|---|
| 206CA | Alcoholic liquor for human consumptionCollected by: Seller or licensee | 206C(1)(a) |
| 206CB | Timber obtained under a forest leaseCollected by: Seller or lessee | 206C(1)(b) |
| 206CC | Timber obtained by any mode other than a forest leaseCollected by: Seller | 206C(1)(c) |
| 206CD | Forest produce other than timber or tendu leavesCollected by: Seller | 206C(1)(d) |
| 206CE | ScrapCollected by: Seller | 206C(1)(e) |
| 206CF | Parking lot — lease, licence or contractCollected by: Lessor or licensor | 206C(1C) |
| 206CG | Toll plaza — lease, licence or contractCollected by: Lessor or licensor | 206C(1C) |
| 206CH | Mine or quarry — lease, licence or contractCollected by: Lessor or licensor | 206C(1C) |
| 206CI | Tendu leavesCollected by: Seller | 206C(1) |
| 206CJ | Certain minerals — coal, lignite, iron oreCollected by: Seller | 206C(1) |
| 206CK | Cash sale of bullion or jewelleryCollected by: Seller | 206C(1D) |
| 206CL | Sale of a motor vehicleCollected by: Dealer | 206C(1F) |
| 206CM | Cash sale of goods other than bullion and jewelleryCollected by: Seller | 206C(1D) |
| 206CN | Providing any servicesCollected by: Seller of service | 206C(1H) |
| 206CO | Overseas tour programme package, or LRS remittance repaying an 80E education loanCollected by: Tour operator or authorised dealer | 206C(1G) |
| 206CP | LRS remittance for education or medical treatmentCollected by: Authorised dealer | 206C(1G) |
| 206CQ | LRS remittance for any other purposeCollected by: Authorised dealer | 206C(1G) |
| 206CR | Sale of goods, including notified luxury goodsCollected by: Seller | 206C(1H) from 1 Apr 2025 |
Reporting codes are labels used by the Income Tax Department. The provision column is the law. From 1 April 2026 Section 394 of the Income Tax Act 2025 replaces Section 206C, the quarterly return moves from Form 27EQ to Form 143, and the challan uses the numeric codes above — but collections made up to 31 March 2026 keep the legacy codes on the statement.
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What is 206CO on Form 26AS?
206CO is the reporting code for TCS under Section 206C(1G) on an overseas tour programme package, and on remittances made to repay an education loan taken from a financial institution covered by Section 80E. It is not a liquor-sector levy.
Is 206CE the same as TCS on sale of goods?
No. 206CE is the reporting code for TCS on scrap under Section 206C(1)(e). The sale-of-goods collection most people mean sits in the goods and services codes 206CM and 206CN.
What does 206CM mean on my statement?
206CM is the code for collection on a cash sale of goods other than bullion and jewellery, charged under Section 206C(1D).
What is 206CN used for?
206CN is the code for collection on providing services, charged under Section 206C(1H).
What is the difference between 206CP and 206CQ?
Both sit in the Liberalised Remittance Scheme bucket of Section 206C(1G). 206CP covers remittances for education or medical treatment funded by an 80E loan, which carries the lowest rate. 206CQ covers remittances for every other purpose.
Are these codes separate sections of the Income-tax Act?
They are not. They are the Income Tax Department's reporting codes used on Form 26AS and Form 27D. The charging provisions live in Section 206C and its sub-sections and clauses.
Can I claim TCS shown under 206CO as a credit?
Yes, subject to normal conditions: the collector must have deposited the amount and filed the TCS statement. The credit then appears in Schedule TCS of your return and is set off against your liability or refunded.
What if my 26AS shows a code but my bank never gave me a Form 27D?
Ask the collector for the certificate. If they cannot produce one, the entry may be a reporting error; raise a grievance on the e-filing portal and attach whatever bank statement or remittance advice you hold.
Does a higher code appear if I did not give PAN?
Higher collection applies where the buyer or remitter is a specified non-filer or has not furnished PAN, which is a different mechanism. The code shown can still be the original 206C code, with the higher amount, so check the amount as well as the code.
Where do I enter this in the ITR?
In the TCS schedule of the return, quoting the collector's TAN and the amount. Keep the 27D certificate on file — it is the document the department will ask for if the credit is queried.
Is section 206C replaced in 2026?
Yes. From 1 April 2026 the Income Tax Act 2025 applies, and Section 394 replaces old Section 206C for tax collected at source. The deposit challan stays ITNS 281, but the challan now asks for a numeric code between 1068 and 1092 instead of a sub-section, and the quarterly return is filed in Form 143 rather than Form 27EQ.
Does the 1 April 2026 change affect codes already on my 26AS?
No. The regime is decided by when the amount was received, not when the tax was deposited. Collections made on or before 31 March 2026 keep the old Section 206C codes even if the tax was paid in April, so both generations of code can appear across your statements for several years.
Which form replaces 27EQ for TCS returns in 2026-27?
Form 143 replaces Form 27EQ for collections made on or after 1 April 2026, and the certificate that replaces Form 27D is Form 133. Returns for earlier collections continue under the old forms.
What is code 206CR and why is it new?
206CR is the reporting code for collection on sale of goods under the substituted Section 206C(1H), which took effect on 1 April 2025. The notified luxury goods — watches, art pieces, collectibles, yachts, sunglasses, bags, shoes, sportswear, home theatre systems, race and polo horses — attract 1% beyond the notified threshold from 22 April 2025 and are reported under the same family.
Did TCS rates change on 1 April 2026?
Several did. Alcoholic liquor, tendu leaves, scrap and minerals moved to a flat 2%. LRS remittances for education or medical treatment dropped to 2%, while remittances for other purposes stayed at 20%. Overseas tour programme packages moved to a flat 2% instead of the previous split between 5% and 20%.
What happens if the buyer or remitter does not give PAN?
Higher collection applies — the higher of twice the applicable rate, 5%, or 20% under Section 397(2) of the Income Tax Act 2025, which replaces old Section 206CC. The reporting code on the statement can stay the same while the amount reflects the higher rate, so check the amount as well as the code.
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