1% TCS on cars above Rs 10 lakh in Mumbai: why it is in your on-road price and how to claim it
By Arjun Ramanarayanan, IndiCar · Published 14 October 2026 · Tips
Any new car priced above Rs 10 lakh attracts 1% TCS on the full sale value. On the MG Windsor EV EXCITE in Mumbai that line is Rs 14,698, and you can claim it as a tax credit in your ITR.
If the car you are buying costs more than Rs 10 lakh, the seller must collect 1% of the sale consideration from you as income tax. It is called TCS, and it appears as a separate line in your on-road price. It is income tax collected in advance in your name, not a charge kept by the seller. You get it back as a credit against your tax bill when you file your return, or as a refund if it exceeds the tax you owe.
What TCS is
TCS stands for tax collected at source. The seller collects the tax from you when you buy the car and pays it to the government on your behalf. For cars, the rate is 1% of the sale consideration on any motor vehicle valued above Rs 10,00,000.
The rule is not limited to luxury cars. A mid-size SUV or an electric car that crosses Rs 10 lakh attracts TCS the same way a premium sedan does.
When the 1% applies, and on how much
The threshold is exceeding Rs 10 lakh. A vehicle priced at Rs 9,50,000 attracts no TCS at all. Once the price crosses Rs 10 lakh, the 1% applies to the whole sale consideration, not only to the part above Rs 10 lakh. On a Rs 12 lakh car, that means TCS of Rs 12,000.
- Payment mode does not matter. Cash, cheque, transfer or loan, the 1% still applies.
- Retail sales only. The rule covers sales to buyers like you. It does not apply when a manufacturer sells to a dealer or distributor.
- Your PAN matters. If you do not give your PAN, TCS can be collected at a higher rate, up to 5%, under Section 397.
Tax sources differ on what the base includes. One explains that the base excludes GST. Another gives an example of an invoice value of Rs 17,70,000, covering price plus GST and other statutory charges, with TCS of Rs 17,700 if the seller uses the full sale consideration. The amount on your car depends on the base used, so read the TCS line itself rather than estimating it. IndiCar shows that line in your itemised price before you book.
What changed on 1 April 2026
Only the section number changed. Up to 31 March 2026, the rule sat in Section 206C(1F) of the old Income-tax Act. From 1 April 2026, it sits in Section 394(1), Table Sl. No. 6, of the Income-tax Act, 2025. The rate is still 1% and the threshold is still above Rs 10 lakh.
Which law applies depends on when the seller receives your money. Amounts received on or before 31 March 2026 fall under the old Act, and amounts received on or after 1 April 2026 fall under the new one. The forms were renamed too. The seller's quarterly TCS statement is now Form 143, previously Form 27EQ, and the certificate you receive is now Form 133, previously Form 27D.
How TCS shows up in a Mumbai on-road price
On the cheapest MG Windsor EV in Mumbai, TCS is Rs 14,698. These figures come from IndiCar's price list dated 22 September 2026, for an individual registering the car in Mumbai. The entry variant is the EXCITE Electric Automatic, with an ex-showroom price of Rs 14,69,800.
| Line in the on-road price | Amount |
|---|---|
| Ex-showroom price | Rs 14,69,800 |
| RTO registration and road tax (Mumbai, individual) | Rs 1,770 |
| Insurance (first-year comprehensive) | Rs 96,208 |
| TCS | Rs 14,698 |
| FASTag | Rs 850 |
| On-road price | Rs 15,83,326 |
The on-road price is Rs 1,13,526 above ex-showroom. Insurance is the biggest part of that gap, and TCS is the next biggest.
The Windsor EV range shows why TCS applies across the board on this car. IndiCar prices 5 variant and powertrain combinations, all electric with automatic gearboxes. The cheapest is the EXCITE at Rs 15,83,326 on-road (15.83 lakh). The most expensive is the ESSENCE PRO at Rs 20,37,157 on-road (20.37 lakh), with an ex-showroom price of Rs 18,99,800. The gap between them is Rs 4,53,831. Even the entry variant's ex-showroom price is above Rs 10 lakh, so every Windsor EV on this list carries a TCS line. These are purchase prices only. Running costs are not covered here. You can see each variant's full breakup on the MG Windsor EV price page.
How to claim the TCS back
You claim TCS when you file your income tax return. It does not come back on its own. Paying TCS does not trigger a refund by itself.
- Check that it shows up. Once the TCS is deposited, it appears as a tax credit in your Form 26AS and Annual Information Statement (AIS). You can claim only what actually appears in Form 26AS, so check it before you file.
- Claim it in your ITR. Enter the amount under the Taxes Paid section of your return.
- It reduces your tax bill. Say you paid Rs 12,000 TCS on a Rs 12 lakh car and your total tax payable is Rs 20,000. After the credit, you pay a balance of Rs 8,000.
- Any excess comes back as a refund. If your TCS is more than the tax you owe, you can get the difference as a refund.
Documents to keep
- The purchase invoice showing the TCS amount
- The TCS certificate for your purchase: Form 27D for amounts received up to 31 March 2026, Form 133 for amounts received from 1 April 2026
- A note of the PAN used at purchase
- Your Form 26AS showing the credit
Buying through IndiCar
To see the TCS line for any car before you decide, use the on-road price calculator or browse all new cars with Mumbai on-road prices.
Sources
- Section 206C(1F) TCS on sale of motor vehicles
- TCS Rate Chart for Tax Year 2026-27 under Income-tax Act, 2025
- Section 206C(1F): TCS on Sale of any Motor Vehicle of the value exceeding Rs.10 Lakh
- TCS on Sale of Motor Vehicle above Rs 10 lakh, Seller compliance - TAXAJ Learn
- Section 394 of the Income Tax Act: TCS Rates and Rules
- TCS Section 206C(1F): 1% on Rs 10 Lakh Vehicles
- Newly Introduced TCS on Purchase of Motor Vehicles
- Section 206C(1F) TCS on Sale of Motor Vehicles
- Section 394 Income Tax Act 2025
- ITR filing 2026: Bought a car above Rs 10 lakh? - BusinessToday
- TCS on Car Purchase: How to Get the 1% Back Through Your ITR or Form 12BAA
- How to Claim TCS Refund on Car Purchase?
- TCS on Car Purchase for Seafarers: Claim TCS Credit in ITR
Buying a new car through IndiCar
IndiCar sells new cars in Mumbai, Navi Mumbai and Thane. You buy a new car from IndiCar at the on-road price shown on its car page, with every line itemised: ex-showroom, registration, insurance, TCS and FASTag. You book online with a refundable reservation, and IndiCar sources the car from partner dealer stock and handles the registration, insurance, paperwork and delivery.
You deal only with IndiCar from quote to delivery. Your phone number is never passed to a dealer, and you do not need to take the quote to a showroom to negotiate. See on-road prices and book or get a WhatsApp quote on +91 85916 41004.
Frequently asked questions
Does a car priced at exactly Rs 10 lakh or less attract TCS?
No. TCS applies only when the value exceeds Rs 10 lakh. A vehicle priced at Rs 9,50,000, for example, attracts no TCS.
Is the 1% charged only on the amount above Rs 10 lakh?
No. Once the price crosses Rs 10 lakh, the 1% applies to the entire sale consideration. On a Rs 12 lakh car, that is Rs 12,000.
Did the TCS rule change on 1 April 2026?
Only the section changed. It moved from Section 206C(1F) of the old Act to Section 394(1), Table Sl. No. 6, of the Income-tax Act, 2025. The 1% rate and the above Rs 10 lakh threshold are unchanged.
What happens if I do not give my PAN?
TCS can be collected at a higher rate, up to 5%, under Section 397.
How do I get the TCS back?
Check that the amount appears in your Form 26AS, then claim it under the Taxes Paid section of your ITR. It reduces your tax payable, and any excess over the tax you owe is available as a refund. It is not refunded automatically.
How much TCS is in the MG Windsor EV on-road price in Mumbai?
On the EXCITE Electric Automatic, the cheapest variant, the TCS line is Rs 14,698 within an on-road price of Rs 15,83,326, according to IndiCar's price list dated 22 September 2026.
Tags: tcs, on road price, income tax, mumbai, mg windsor ev