Bought A Car Above Rs 10 Lakh? How To Check If Your TCS Was Recorded

Many car buyers do not realise that the moment the price of a vehicle crosses Rs 10 lakh, an extra tax gets added under the Income Tax Act. This amount, known as Tax Collected at Source (TCS), has to be collected by the seller right at the time of purchase. It applies to cars of all kinds, and the law does not treat new, old or imported vehicles differently.

Under Section 206C(1F), the seller must collect TCS at 1 per cent of the value of any car priced above Rs 10 lakh. So if someone buys a vehicle worth Rs 12 lakh, the dealer has to collect Rs 12,000 as TCS. This system helps the government keep track of high-value purchases and ensures the buyer’s details are properly recorded to reduce the chances of tax evasion.

Why The Tax Is Collected And How It Is Used

The basic idea behind TCS