Section 206C(1F) · FY 2026-27 · TCS on Vehicles

TCS on Motor Vehicle Calculator

Buying a car above ₹10 lakh? The seller collects 1% TCS at source under Section 206C(1F). See the TCS amount and your on-road total live.

Category
Income Tax & TDS
Takes about
30 sec
Updated
Sep 2026
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Full breakdown below ↓
🚗 Vehicle value
Ex-showroom / sale value Value on the seller's invoice
₹
TCS under Sec 206C(1F) applies when the sale value of a single motor vehicle exceeds ₹10,00,000 — computed on the full value, not just the amount above ₹10 lakh.
🪪 PAN of buyer
Have you given your PAN to the seller?
Always share your PAN with the dealer. Without a valid PAN, Section 206CC can push TCS to a higher rate and the credit will not reflect in your Form 26AS / AIS.

TCS computation — Section 206C(1F)

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Disclaimer: Indicative estimate under Section 206C(1F). The seller is responsible for collecting TCS. Rates per the Income-tax Act as amended by Finance Act 2025. Consult a professional for your specific transaction.

TCS on motor vehicles — Section 206C(1F)

When a seller sells a motor vehicle whose value exceeds ₹10,00,000, they must collect 1% Tax Collected at Source (TCS) from the buyer under Section 206C(1F). The 1% is charged on the entire sale value — not just the portion above ₹10 lakh. This TCS is not an extra tax: it is credited to the buyer's PAN and is fully adjustable against the buyer's income-tax liability (or refundable) at the time of filing the ITR.

₹10L
Threshold — TCS applies only when vehicle value exceeds ₹10,00,000
1%
Rate of TCS collected by the seller on the full sale value
Full value
TCS is on the entire value, not merely the amount above ₹10 lakh
Adjustable
Credited to buyer's PAN — set off against tax or claimed as refund in the ITR

How the TCS is calculated

Check whether the vehicle value crosses ₹10 lakh → if it does, apply 1% on the whole value → that is the TCS the dealer adds to your invoice. Your on-road total (for this component) is the value plus the TCS. Below the threshold, no TCS applies at all.

₹8,00,000 vehicle
Above ₹10L?No
TCS @ 1%₹0
You pay₹8,00,000
₹15,00,000 vehicle
Above ₹10L?Yes
TCS @ 1%₹15,000
On-road total₹15,15,000
₹25,00,000 vehicle
Above ₹10L?Yes
TCS @ 1%₹25,000
On-road total₹25,25,000
TCS is charged on the full value once the ₹10 lakh threshold is crossed — a ₹15 lakh car attracts ₹15,000 (not 1% of ₹5 lakh). The TCS you pay is later credited to your PAN and reduces your final tax.

Key terms explained

Section 206C(1F)

Requires the seller of a motor vehicle to collect 1% TCS from the buyer when the sale value exceeds ₹10,00,000. It applies per vehicle, on the full consideration, and covers sales to individuals as well as businesses.

Threshold vs. full value

The ₹10 lakh is only a trigger. Once the value is above ₹10 lakh, the 1% is charged on the entire sale value — so ₹15 lakh means TCS of ₹15,000, not 1% of the ₹5 lakh excess.

PAN & Section 206CC

Give your PAN to the dealer so the TCS reflects in your Form 26AS / AIS. If PAN is missing or invalid, Section 206CC can apply a higher collection rate and you lose easy credit of the tax.

Luxury goods (from FY 2026-27)

From FY 2026-27, 1% TCS also applies to other notified luxury goods above ₹10 lakh — such as high-value watches, art, yachts and handbags — extending the same 206C mechanism beyond motor vehicles.

Questions people ask

Short answers on TCS on Motor Vehicle (206C-1F). Tap a question to open it.

01When is TCS collected on a motor vehicle?

Under section 206C(1F), the seller collects 1% TCS where the sale consideration of a motor vehicle exceeds ₹10 lakh. It applies to the sale value, not to the amount above the threshold.

02Does it apply to a purchase from an individual?

No. The obligation is on a seller who is required to collect, and applies to retail sale by a dealer. A private sale between individuals does not attract TCS under this section.

03Does it apply to commercial vehicles?

It applies to any motor vehicle sold above the threshold, whether for personal or commercial use. Certain notified buyers such as government bodies and public sector companies are exempt.

04Is the TCS refundable?

It is not a separate tax — it is credited to your PAN and adjusted against your income-tax liability, with any excess refunded when you file your return.

05What if I do not have a PAN?

TCS is collected at a higher rate where the buyer has not furnished a PAN, and the credit cannot be tracked to you, so the amount is effectively lost. Always give your PAN at the time of purchase.

Disclaimer: This tool gives indicative results for general guidance only and is not professional advice. Please verify with a qualified CA before acting on the numbers.