What is the current 1% motor-vehicle TCS rule (legacy Section 206C(1F))?

Sellers of motor vehicles must collect 1% TCS from buyers on any motor vehicle purchase value exceeding ₹10 Lakhs at the time of sale.

Can TCS collected by sellers be adjusted against income tax payable in ITR?

Yes. TCS collected appears in your Form 26AS/AIS and acts as advance tax credit. You can offset full TCS against your final annual tax liability or claim it as a cash refund when filing ITR.

What is the difference between TDS (Tax Deducted at Source) and TCS (Tax Collected at Source)?

TDS is deducted by the payer/buyer when making a payment to a receiver (e.g., salary, rent, professional fee). TCS is collected by the seller from the buyer at the time of sale (e.g., luxury cars, forex remittances).

Does a legacy non-filer higher-TCS rule still apply?

Do not apply legacy Section 206CCA automatically to Tax Year 2026-27. Use the current Section 394 collection row and Section 397 documentation rules, including PAN treatment, for the transaction and effective date.

TCS Calculator (FY 2026-27)

Estimate Tax Year 2026-27 TCS for LRS remittances, overseas-tour packages, specified motor-vehicle sales, and scrap under Section 394.

When does TCS apply?

For Tax Year 2026-27, this calculator covers the represented Section 394 categories: overseas-tour packages, LRS remittances, qualifying education or medical remittances, specified motor-vehicle sales and scrap. LRS calculations use the tax-year aggregate and the overseas-tour category is handled separately, so choose the transaction type before entering the amount.

LRS remittanceEnter earlier LRS remittances from the same tax year so only the applicable portion is tested.

Overseas tour packageKeep this separate from LRS; the package category has its own treatment.

PAN and creditMissing-PAN treatment and the credit shown in your tax records can change the practical outcome.

TCS Calculation Details

Transaction Category (Section 394)

Transaction Amount (₹)

Buyer Has Valid PAN?

Yes (Standard TCS)No (Higher Rate for Missing PAN)

Computation Result

Category NameOverseas tour programme package

TY 2026–27 Reference394(1), Table item 8

TCS Taxable Portion₹10,00,000

Effective TCS Rate2%

TCS Amount Collected+₹20,000

Total Invoice Amount (Base + TCS)₹10,20,000

Rule Details: 2% on the entire package amount; no monetary threshold from 1 April 2026.

Source basis: Income-tax Act, 2025 section 394 and Finance Act 2026, effective 1 April 2026. LRS thresholds are tax-year aggregates across applicable remittances; enter earlier remittances above.

Want to keep this calculation?

Save the tool on this device, print the visible result to paper or PDF, or share the page. Shared links do not include your entered numbers.

Frequently Asked Questions (FAQs)

Under Section 394, LRS remittances generally use a ₹10 lakh annual threshold: 20% on the excess for other purposes, 2% on the excess for education or medical treatment, and 0% for qualifying education remittances funded by a specified financial-institution loan. Overseas-tour programme packages are generally subject to 2% without that LRS threshold.