TCS Calculator — Section 206C
Tax Collected at Source (TCS) is the mirror image of TDS: the seller collects tax from the buyer at the time of sale and deposits it with the Government. The buyer gets credit for it in Form 26AS and can adjust it against their final tax liability. This calculator covers every major TCS trigger under section 206C with the rates and thresholds applicable from 1 April 2025.
TCS rates at a glance
- 206C(1) — Alcoholic liquor 1%, tendu leaves 5%, timber 2.5%, scrap 1%, minerals (coal, lignite, iron ore) 1%
- 206C(1C) — Parking lot, toll plaza, mining lease: 2%
- 206C(1F) — Motor vehicle with value above ₹10 lakh: 1% on the full amount; also notified luxury goods (watches, art, yachts etc.) above ₹10 lakh
- 206C(1G) — Remittances under LRS above ₹10 lakh: 20% (nil for loan-funded education; 5% for self-funded education or medical treatment); overseas tour packages 5% up to ₹10 lakh and 20% above
- 206C(1H) — Sale of goods above ₹50 lakh at 0.1% — withdrawn from 1 April 2025; buyers now deduct TDS u/s 194Q instead
Without PAN
Section 206CC doubles the rate (minimum 5%) when the buyer does not furnish PAN or Aadhaar. For LRS the rate cannot exceed 20%.
Worked example
You remit ₹15,00,000 abroad in a year to buy foreign shares. The first ₹10,00,000 is exempt, so TCS = (15,00,000 − 10,00,000) × 20% = ₹1,00,000. The bank collects it upfront; you claim it as a credit in your return. If the same amount were paid to a tour operator for a foreign holiday, TCS = 10,00,000 × 5% + 5,00,000 × 20% = ₹1,50,000 because tour packages have no threshold exemption.
Compliance
TCS must be deposited by the 7th of the following month and reported quarterly in Form 27EQ, with Form 27D issued to the buyer. From FY 2025-26, salaried employees can declare TCS to their employer so it is adjusted against salary TDS, improving cash flow.
Frequently Asked Questions
What is the TCS rate on foreign remittance in 2025-26?
Under LRS, remittances up to ₹10 lakh per financial year attract no TCS. Above that: 20% for investments, gifts and other purposes; 5% for education or medical treatment from own funds; nil for education financed by a loan from a financial institution.
Is TCS on a car charged only above ₹10 lakh?
If the ex-showroom value exceeds ₹10 lakh, TCS of 1% is collected on the entire sale consideration, not just the excess. The threshold is per vehicle.
Can I get a refund of TCS?
Yes. TCS appears in your Form 26AS/AIS and is credited against your tax liability when you file your return. Any excess is refunded with interest.
Does 206C(1H) still apply?
No. TCS on sale of goods above ₹50 lakh u/s 206C(1H) was omitted with effect from 1 April 2025. Buyers with turnover above ₹10 crore deduct TDS u/s 194Q instead.
Disclaimer: This tool is for general information and estimation only. Tax rates and rules change — verify with official sources or a professional before acting. Read full disclaimer.