Most people in India do not claim Tax Refund (TCS) even after buying a new car. Ashish Meher explained in his post that whenever a person buys a car worth more than Rs 10 lakh, the dealer charges 1 percent Tax Collected at Source (TCS).
If you have recently bought a car worth more than 10 lakh rupees, there is a good news for you. A post by investor Ashish Kumar Meher has created a buzz on social media. He has said that there are many people in India who do not claim the tax refund (TCS refund) received from the government even after buying a new car.
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.
Whenever you buy a car above ₹10 lakh, the dealer collects 1% TCS.
So a ₹10L car → ₹10,000 TCS
A ₹30L…— Ashish Kumar Meher (@AshishMeher7) November 28, 2025
Ashish Meher explained in his post that whenever a person buys a car worth more than Rs 10 lakh, the dealer charges him 1 percent Tax Collected at Source (TCS), i.e. Rs 10,000 TCS on a Rs 10 lakh car.
He explained that this money is yours and you can claim it. All you have to do is get Form 27D from the dealer and check its details in Form 26AS while filing your ITR.
How to get 1% TCS Refund?
Ashish Meher has explained this process in simple terms in his post.
- Get Form 27D from the dealer: This certificate shows how much TCS has been deducted on your car.
- Check Form 26AS: Note, this TCS should appear in your tax records when you file ITR.
- Refund or Adjustment: You can claim this 1 percent amount as a refund or adjust it with your remaining tax.
An important reminder amid rising luxury car sales
The purchase of mid-segment and luxury cars in India is steadily increasing. This post is an important reminder that the 1% TCS levied on car purchase is refundable.
Many buyers are unaware of this and do not claim this amount. In such a situation, when you buy a car in future, don't forget to get Form 27D and claim its refund in ITR.
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