Tax Collected at Source (TCS)
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Source:

Tax collected at source (TCS) is applicable on transactions with foreign merchants. It is collected by bank facilitating such transaction, and it's linked back to user by PAN.

You can verify how much TCS was deducted in Form 26AS, which is comprehensive tax statement. It can be claimed back while filing the Income Tax Return (ITR).

TCS is exempted till limit of 10 Lakh rs annually, rotated every financial year (apr) . After that, it's collected as:

  • 5% on medical or education bills
  • 20% on other transactions

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