The news of a GST reduction on automobiles has sent a wave of excitement through the market. If you have been waiting to upgrade your ride, the lower price tags are definitely tempting. However, while everyone is focused on the showroom discount, there is a hidden 1% saving that most car buyers completely ignore. When you buy a car (especially one valued over ₹10 Lakhs), the dealer adds a charge called TCS (Tax Collected at Source) to your final invoice. Most buyers treat this as an "extra cost" or a "road tax" and forget about it. Here is the secret: That 1% is not a cost. It is an advance tax payment made in your name. If you know how to handle it, you can get every rupee back. Understanding the 1% TCS ChargeLet’s say you buy a car worth ₹15,00,000. The dealer will deduct 1% TCS, which amounts to ₹15,000. This money is deposited by the dealer to the government against your PAN card. Technically, you have already paid ₹15,000 as income tax to the government. If you do not claim this, it is as good as throwing cash in the trash. Method 1: Claiming it via Income Tax Returns (ITR)This is the standard way to get your money back. When the financial year ends and you file your Income Tax Return (ITR): • Log in to the income tax portal. • Check your Form 26AS (Tax Credit Statement). • You will see the ₹15,000 deposited by the car dealer appearing there. • This amount will be adjusted against your total tax liability. If you have already paid your taxes, the government will refund this amount to your bank account. Method 2: The "Instant" Salaried Employee HackIf you are a salaried employee, you don't necessarily have to wait until the end of the year to feel the benefit of this 1%. You can improve your monthly cash flow immediately. Here is the Pro Tip: Your employer deducts TDS (Tax Deducted at Source) from your salary every month based on your estimated tax liability. Since you have already paid ₹15,000 via the car dealer, your total tax liability has technically gone down. • Ask your car dealer for Form 27D. This is the official proof that they have deposited the TCS. • Submit this Form 27D to your HR or Finance department. • Request them to consider this TCS while calculating your remaining tax liability. • The Result: Your employer will reduce the TDS cut from your monthly salary for the remaining months of the year. You take home more salary immediately! Crucial Documents You NeedTo ensure this process is smooth, do not drive the car out of the showroom without asking for: • The Tax Invoice: Showing the TCS amount clearly. • Form 27D: The certificate of TCS collection (Dealers usually generate this quarterly, so follow up with them). Final ThoughtsA GST cut reduces the car's price, but smart financial planning puts money back in your pocket. Whether you adjust it against your salary TDS or claim a refund at year-end, ensure you collect that Form 27D. Don't let your hard-earned 1% become a donation to the government! Disclaimer: The information provided in this article is intended for educational purposes only and does not constitute professional financial or tax advice. Tax regulations are subject to change, and individual financial situations may vary. We recommend consulting with a qualified Chartered Accountant or tax advisor before claiming TCS refunds or modifying your tax filings.