Purchasing a Car on Dhanteras and Diwali 2026: Know How One Can Get ₹10,000 Tax Refund

Dhanteras 2026 falls on Friday, November 6, 2026, and Diwali falls on Sunday, November 8, 2026. Purchasing a car during these periods priced above ₹10,00,000 can make you eligible for a tax refund of at least ₹10,000.  

Buyers can claim this under the Tax Collected at Source (TCS) credit when filing their Income Tax Returns (ITR) in the following year. 

Understanding the TCS Refund Mechanism 

When a car is bought for more than ₹10,00,000, a 1% TCS is levied on the sale. This tax is collected by the dealer on behalf of the government and is linked to the buyer's PAN.  

Although this is an upfront payment, it is not an extra charge. Instead, it serves as a tax paid in advance, and you can claim it as a tax credit, potentially leading to a tax refund. 

Eligibility and Process to Claim TCS Refund 

If the car’s sale value exceeds ₹10,00,000, the buyer is subject to a 1% TCS. For instance, the purchase of a vehicle valued at ₹20,00,000 would see a TCS deduction of ₹20,000.  

Buyers have the opportunity to receive this amount back when filing their tax returns. The amount is credited to the buyer's PAN, tracked, and claimed back via the ITR process. 

Steps to File for a TCS Refund 

1. Collect Form 27D, a TCS certificate, from your dealer. Verify the details, including your PAN and TCS amount.
2. Log in to the income tax e-filing portal and check if the TCS is listed in Form 26AS or AIS. If missing, alert your dealer.
3. Calculate your tax liability for the year. If the liability exceeds the TCS, it reduces your tax payable. If lower, claim a refund.
4. File your ITR, ensuring the TCS credit is accurately claimed, and submit. Confirm your refund status is processed and credit is directed to the validated bank account.

Read More: Diwali 2026 Holidays for Bank and Stock Market (BSE and NSE) This Week! 

Important Considerations 

If the tax due is higher than the TCS collected, the TCS is adjusted against your dues. Any excess TCS qualifies for a refund. Keeping the TCS certificates and ensuring these amounts reflect correctly in your income tax forms is crucial for obtaining the full benefit. 

Conclusion 

Purchasing a vehicle above ₹10,00,000 on Dhanteras, Diwali 2026, incurs 1% TCS, aiding the tracking of high-value purchases. This can lead to a ₹10,000 or more potential tax refund if the tax liability aligns, with refund processing dependent on accurate filing and verification. 

Disclaimer: This blog has been written exclusively for educational purposes. The securities or companies mentioned are only examples and not recommendations. This does not constitute a personal recommendation or investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.