U/s 206cl tcs on sale of car

sir, my client had purchased a car and paid 1 % TCS, is it refundale  as TDS can adjusted with tax payble

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Quick Summary
The discussion explained TCS under Section 206C(1F) on motor vehicle sales above Rs. 10 lakh. The 1% TCS collected by the seller appears in Form 26AS and can be adjusted against tax liability or claimed as refund in the ITR.

Yes. It will refelect in your 26AS statement as credits within 15 days after filling the TCS return by the car seller.

thank you sir

YES , YOU CAN TAKE I.T.C. AND REFUND OF YOUR TCS

What is 206CL under income tax?

Section 206C, sub section (1)......... of Income tax act, 1961.

As per Sec 206C(1F) of the Income tax Act, 1961, TCS @ 1% is to be collected by every seller on sale of motor vehicle for consideration exceeding Rs 10 Lakhs. As per Circular 22/2016 issued by CBDT, this TCS provision is not dependent on the mode of payment (cash, cheque etc.) made by the buyer and thus sale of any vehicle over Rs 10 Lakh value would attract TCS.

Similar to TDS, the 26AS would reflect the TCS collected from the assessee and thus it will be ajusted from his total tax liability and he'll just need to pay the balance amount.

Sir, can you please tell me, how to treat the value(purchase price) of the car in the ITR? and which ITR should be selected?

 

Harish,

You can file any ITR based on the other income of the assessee. You have to mention the details of tax collected at source u/s 206C as per Form 27D  in the Tax Payments section under the head "Details of Tax Collected at Source". This is reflected in Form 26AS of the assessee. In case ITR asks, the gross value of the transaction on which tax is collected at source is to be provided.

Is there any penalty if mistakenly filed incorrect TCS return?

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