<s>[INST] Whether TCS provision of section 206C(1H) applies if buyer is a person whose income is exempted from income tax? [/INST] No tax is required to be collected where goods are sold to a buyer who as a person is exempt from income tax under the Income-tax Act or any other Act passed by the Parliament.

However, this exemption is not available if only part of the income of the buyer is exempt from tax.​​ </s>