If you’ve recently bought a new car costing more than ₹10 lakh, or you’re planning to buy one soon, there’s an important benefit you should know about. Many buyers remain unaware that the government actually owes them money back in the form of a refund.

Investor Ashish Kumar Meher recently explained in a viral X post that customers can claim Tax Collected at Source (TCS) refund after purchasing a high-value car. Most people never claim this amount simply because they don’t know the process.

What is TCS on Car Purchase?

When you buy a car priced above ₹10 lakh, the dealer charges 1% TCS on the transaction:
• Car worth ₹10 lakh → ₹10,000 TCS
• SUV worth ₹30 lakh → ₹30,000 TCS

This amount is linked to your PAN and appears in your tax records.

How to Claim the TCS Refund

Getting your refund is very simple. Follow these steps:

1. Collect Form 27D
   After buying the vehicle, ask your dealer for Form 27D, which confirms the TCS amount collected.

2. Check Form 26AS on the Income Tax Portal
   Log in to the Income Tax portal and verify whether the TCS amount is visible under your tax statement.

3. Claim the TCS in Your ITR
   While filing your Income Tax Return, claim the TCS amount.
   • If your total tax liability is low, the TCS amount will be refunded to your bank account.
   • If you owe taxes, this amount will be adjusted against your total payable tax.

There are no hidden rules and no complicated procedures. The refund is your right — but most buyers simply don’t know about it.

Why This Matters

India has a large number of buyers in the mid-range and premium car segments. However, thousands of people lose out on this refund every year due to lack of awareness. If you or someone you know is buying a car above ₹10 lakh, this information can help save a significant amount.