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Do TCS refund is claimed against limit of section 80C

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anil Gill

23 Points Posted on 05 August 2021

Sir

I have paid TCS of Rs 25000 during a purchase in June 21, and i want to claim its refund in ITR of FY 21-22. But my regular savings crosses the 1.5L limit of section 80C.

All i want to know is that, do i need to reduce my saving in 80C to 1.25L to claim this 25000 TCS, or it is has no relation with my 80C saving exemption limit.

Replies (3)

Quick Summary

This discussion clarifies that Tax Collected at Source (TCS) is separate from the Section 80C deduction limit. You can claim a refund for TCS paid during your Income Tax Return (ITR) filing, as it's treated like an advance tax payment. This process does not require you to reduce your savings claimed under Section 80C.

CA. Sourav Sarkar

Chartered Accountant

16188 Points Posted on 05 August 2021

No it has no relation with 80C
You can claim such TCS during filing ITR

CMA Poornima Madhava

CMA

9106 Points Posted on 05 August 2021

TCS credits are like advance tax payments. Tax payable will be determined after reducing TDS/TCS credits. You may claim refund or adjust against other liabilities at the time of filing of ITR.

Also 80c deductions and TCS credits are different though both help reduce tax liability. No need to reduce 80c savings.