Bought a Car Above ₹10 Lakh? Here's How to Claim Your 1% TCS Refund in ITR

Buying a new car is exciting, but did you know it can also fetch you a refund while filing your Income Tax Return (ITR)? Finance influencer CA Meenal Goel recently highlighted a little‑known benefit that many new car owners overlook, claiming back the TCS (Tax Collected at Source) deducted at the time of purchase. If you've recently bought a car priced above ₹10 lakh (ex‑showroom), this is something you definitely shouldn't miss.

What Is TCS on Car Purchases?

When you purchase a vehicle with an ex‑showroom price above ₹10 lakh, the dealer is required to collect 1% TCS on the sale amount. This amount isn't an extra tax; it's simply an advanced tax collected under your PAN and deposited with the government.

For example, if your car's ex‑showroom price is ₹15 lakh, the dealer collects ₹15,000 as TCS. This deduction will later appear in your Form 26AS / AIS as tax already paid on your behalf.

Why You Should Claim This Amount During ITR Filing:

TCS is not an additional burden but a claimable amount. When filing your ITR, the TCS paid gets adjusted against your total tax liability for that financial year.

If your total tax liability is less than the TCS amount, you get a refund.

If your tax liability is more, the TCS simply reduces the amount you need to pay.

In short, you never lose this 1%, but only if you claim it while filing your return.

Where to Check Your TCS Details:

You can verify the TCS collected by the dealer by checking:

Form 26AS on the Income Tax portal

Annual Information Statement (AIS)

Both will show the TCS credited under your PAN.

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If you've bought a car above ₹10 lakh, make sure you're not leaving money on the table. As CA Meenal Goel emphasizes, claiming your TCS refund is simple, legal, and smart financial behaviour. Don't forget to include it in your next ITR filing, it's your money, after all!