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TDS Section 206C(1F) TCS on sale of motor vehicle > ₹10 lakh

FY 2025-26 · Rate 1%

Section
206C(1F)
Rate (with PAN)
1%
Rate (no PAN)
5%

What does this section cover?

TCS by motor dealer when selling a motor vehicle of value > ₹10 lakh.

Why this section: Dealer collects 1% TCS on any motor vehicle invoice exceeding ₹10L — buyer can claim credit in ITR.

Key facts

Threshold
₹10,00,000 per vehicle
Applicable for
FY 2025-26
Who deducts
Motor vehicle dealer / seller
Paid to
Buyer of vehicle
Statutory source
Section 206C(1F), Income Tax Act
Compute and file this TDS with CAhelperFree TDS computation, Form 26Q prep, challan generation — Part of KLI.

Common terms accountants use

If your description mentions any of these, Section 206C(1F) is likely the right answer. The matcher in this tool is a keyword scorer — not an AI classifier — so cross-check borderline cases against the official CBDT TDS rate chart.

car purchase tcsluxury car tcsvehicle 10 lakhcar dealer tcssuv tcs

Related TDS sections

Other sections in the same series or adjacent. Useful when narrowing down between similar payment categories.

Need a different section?

Describe the payment in plain English — “rent of plant”, “senior citizen interest”, “NRI dividend” — and the matcher will surface the right section.

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Source: curated from the CBDT TDS rate chart. Dataset snapshot: 2025-04-01. Rates can change between Finance Acts and notifications — verify before deducting.