'Govt owes you money back when you buy a new car': Investor on how to claim TCS refund on Rs 10L+ cars

A post by investor Ashish Kumar Meher has triggered a wave of surprise, and relief, among car buyers after he explained that anyone purchasing a vehicle priced above ₹10 lakh is entitled to get back the 1% Tax Collected at Source (TCS) charged by dealerships.

“Most people in India don’t know this… but when you buy a new car in India the government actually owes you money back. Yes, a refund. And it’s already linked to your PAN,” Meher wrote on X. He broke down the math simply: “Whenever you buy a car above ₹10 lakh, the dealer collects 1% TCS. So a ₹10L car → ₹10,000 TCS. A ₹30L SUV → ₹30,000 TCS. This money is YOURS. You can claim it.”

Meher urged buyers to secure the paperwork immediately. “How to get it back? Ask your dealer for Form 27D right after purchase. Check your Form 26AS while filing ITR. Make sure the TCS is visible. Claim it as refund or adjust it against your tax. That’s it. No trick. No hidden rule. Just a benefit almost nobody talks about.”

The post quickly gained traction, with users echoing his advice and warning buyers not to miss out. One response read: “If you bought a car above ₹10 L and dealer collected 1% TCS – don’t forget to check your Form 26AS before ITR filing. Claim it and get back that extra ₹10–30k (or more). Many don’t – don’t be one of them. #TaxTip”

Another user emphasised that the collection is often misunderstood: “Most people genuinely miss this → that 1% TCS is not an extra charge, it’s literally your own money sitting with the government waiting to be claimed. Anyone buying a car above ₹10 lakh should absolutely make sure they take that refund or adjust it against their tax – no point leaving free money on the table.”

A third noted that the credit should already reflect in tax records: “This would already be part of AIS, which can be claimed back during ITR without 27D Form.”

With luxury and mid-segment car purchases rising, Meher’s post has turned into a timely reminder: the 1% TCS collected upfront is refundable — and many buyers are simply unaware they can get it back.