Archive · 19 Jul 2026
Car Buyers Can Claim Tax Refund
When you buy a car in India that costs more than ₹10 lakh, the dealer takes 1% of the price as TCS (a type of tax).
This isn't an extra charge but a tax you pay in advance.
When you file your taxes, you can use this TCS to reduce what you owe.
If you've paid more TCS than your actual tax, you can get the extra money back as a refund.
To do this, you need to check your Form 26AS or AIS to see the TCS, make sure the dealer gave you the right certificate (Form 27D), and then claim it when you file your taxes.
If the TCS isn't showing up, you should talk to the dealer to fix it.
Car buyers in India can claim a tax refund on the 1% TCS collected by dealers for vehicles over ₹10 lakh.
TCS is adjustable against total tax liability when filing income tax returns.
Excess TCS can be claimed as a refund if tax liability is lower.
Buyers should verify TCS in Form 26AS or AIS and obtain Form 27D from the dealer.
Dealers must deposit TCS against the buyer's PAN and correct any discrepancies.
- Who
- Car buyers who purchased vehicles over ₹10 lakh
- What
- Claim a tax refund on the TCS collected by dealers
- When
- While filing income tax returns for the financial year of purchase
- Where
- India
- Why
- To adjust TCS against total tax liability and claim excess as refund
- TCS Threshold
- ₹10 lakh
- TCS Rate
- 1%
- Refund Eligibility
- If tax liability is lower than TCS collected
- Verification Form
- Form 26AS or AIS
- TCS Certificate
- Form 27D
- Refund Example
- ₹15,000 for a ₹15 lakh car