Buying a Car Over ₹10L? Claim Your TCS Back
When you buy a car costing more than ₹10 lakh, the dealer collects 1% of the price as Tax Collected at Source (TCS). This is not an extra tax — you can claim it back when you file your ITR.
On a ₹15L car, TCS alone is ₹15,000 — that's 150 cups of premium café coffee
Your car purchase bill is higher than the sticker price shows
Key Takeaways
Ask the car dealer for a TCS certificate (Form 27D) at the time of purchase — this is your proof of tax collected against your PAN.
Log into the Income Tax portal and check Form 26AS or your Annual Information Statement (AIS) to confirm the TCS amount is reflected before filing your ITR.
Claim the TCS amount as a tax credit while filing your ITR — it will be adjusted against your total tax liability or refunded if you paid excess tax.
When you buy a car costing more than ₹10 lakh, the dealer collects 1% of the price as Tax Collected at Source (TCS). This is not an extra tax — you can claim it back when you file your ITR.
Here's what happened: Under Section 206C(1F) of the Income Tax Act, car dealers must collect 1% TCS on any motor vehicle sold above ₹10 lakh.. TCS is deposited with the government against your PAN and appears in your Form 26AS, just like TDS deducted by an employer.. This rule applies to individual buyers too — not just businesses — meaning lakhs of middle-class car buyers pay TCS every year without realising they can get it back..
What you should do: Ask the car dealer for a TCS certificate (Form 27D) at the time of purchase — this is your proof of tax collected against your PAN.. Log into the Income Tax portal and check Form 26AS or your Annual Information Statement (AIS) to confirm the TCS amount is reflected before filing your ITR.. Claim the TCS amount as a tax credit while filing your ITR — it will be adjusted against your total tax liability or refunded if you paid excess tax..
If your total income falls below the taxable limit, you can apply for a lower or nil TCS certificate in advance by submitting Form 13 to your Assessing Officer — saving cash upfront rather than waiting for a refund.
Check Your Tax Credits
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This article is reported by GoCredit's Editorial Team based on the source above. GoCredit synthesises, contextualises, and adds India-borrower-relevant analysis. We are not the original publisher.