07/05/2025
TCS on Cars Above 10 Lakhs Explained | Tata Punch Example | Claim Refund in ITR
If you're planning to buy a car worth more than ₹10 lakhs in India — such as the Tata Punch top variant — you should be aware of TCS (Tax Collected at Source) under Section 206C(1F) of the Income Tax Act.
According to the rule, car dealers are required to collect 1% TCS on cars valued over ₹10,00,000.
For example:
Car price: ₹12,00,000
TCS collected: ₹12,000
This TCS amount is reflected in your Form 26AS and can be claimed as a refund in your Income Tax Return (ITR) if you have no other tax liability.
This video explains:
What is TCS on car purchase in India
How TCS is calculated for cars above ₹10 lakhs
How to claim TCS refund in ITR
Who can claim the refund
Section 206C(1F) rules and benefits
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