The 60-second version
Section 206CB requires seller to collect TCS at twice the Section 206C rate or 5% whichever is higher when buyer PAN is inoperative — returning NRIs must link PAN-Aadhaar before car, bullion, or LRS purchases.
Inoperative PAN triggers 206CB — link Aadhaar before dealer delivery or tour booking
Section 206CB applies when buyer PAN is inoperative under Rule 114AAA — typically PAN not linked to Aadhaar by prescribed deadline.
Seller must collect TCS at twice the applicable Section 206C rate or 5%, whichever is higher — returning NRIs face extra collection on car and jewellery even after OCI KYC.
No-PAN lane: Section 206CC guide when buyer fails to furnish PAN at all.
206CB vs normal TCS
| Trigger | Normal TCS | 206CB rate |
|---|---|---|
| Operative PAN | Section 206C rate | Not applicable |
| Inoperative PAN | Section 206C rate | 2× rate or 5% |
| No PAN furnished | N/A | 206CC applies |
| Non-filer buyer | Normal + 206CCA | 206CCA extra |
Restore operative PAN
Check status
e-filing PAN-Aadhaar.
Link Aadhaar
Before purchase.
Verify operative
Portal green tick.
Purchase
At normal TCS.
Claim TCS
Form 26AS credit.
Flow
206CB kit
- PAN card.
- Aadhaar.
- Link confirm.
- Purchase invoice.
- 26AS.
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Dealer delivery
Car dealer may refuse delivery until PAN shows operative on TRACES — link Aadhaar before booking.
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vs 206CC?
206CC applies when buyer fails to furnish PAN; 206CB applies when PAN is inoperative.
vs 206CCA?
206CCA is non-filer extra TCS; 206CB is inoperative-PAN extra TCS — both can stack.
OCI PAN?
Form 49AA PAN must link to Aadhaar if eligible — same 206CB rule.
How to fix?
Link PAN-Aadhaar on e-filing portal — status updates within 24–48 hours.
Seller penalty?
Section 206CA if seller fails to collect 206CB when PAN inoperative.
Claim TCS?
Higher TCS still credits to Form 26AS — claim in ITR.
Your tax year is already running.
RNOR status, exit timing, and DTAA benefits all depend on decisions you make before you land. Don't guess.