TCS on Purchases: Are You Losing Your Refund?

Tax Collected at Source (TCS) is deducted when you buy a car, foreign trip, or other big-ticket item. Many buyers never reclaim it. Here's how to get your money back at tax filing time.

Here's what happened: Courts have directed refunds of TCS collected from buyers in commercial disputes, reinforcing that TCS is a credit — not a final tax — and must be refunded if excess is paid.. TCS applies to individual buyers too: cars above ₹10 lakh attract 1% TCS, overseas remittances above ₹7 lakh attract 20% TCS, and foreign tour packages have their own rates.. If your total income tax liability is lower than TCS already collected, the IT department must return the difference — but only if you file your ITR and claim it..

What you should do: Log in to incometax.gov.in, open your Annual Information Statement (AIS) and check for any TCS entries linked to your PAN from purchases you made this year.. When filing your ITR, report TCS under the 'Tax Credits' section — match it against Form 26AS to ensure the seller has correctly deposited it against your PAN.. If TCS was deducted but the seller's PAN entry is wrong or missing in Form 26AS, contact the seller immediately to file a TCS correction return before you file your ITR..

If you remitted money abroad for education (not investment), TCS is only 0.5% above ₹7L under an education loan — vastly lower than the 20% rate most people fear. Always quote the education-loan exemption to your bank.

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