The 60-second version
Section 206CCA adds higher TCS if seller flags you as non-filer for two preceding years — returning NRIs must file belated ITR and check AIS before large purchases trigger extra collection.
File belated ITR before car or jewellery purchase — seller collects 206CCA TCS
Section 206CCA requires sellers to collect higher TCS if buyer is a specified person — non-filer for two preceding years with aggregate TCS/TDS ≥ INR 50,000.
Returning NRIs buying car, bullion, or overseas tour package may face extra 5% TCS if still flagged — file belated ITR under Section 139(4) first.
TDS mirror: Section 206AB guide for vendor-side higher TDS on your invoices.
206CCA triggers
| Purchase | Normal TCS | 206CCA extra |
|---|---|---|
| Motor vehicle > INR 10L | 1% | +5% if non-filer |
| Jewellery > INR 2L | 0.1% | +5% if non-filer |
| Overseas tour | 5% LRS | +5% if non-filer |
| Filed ITR | Normal rate | Removed next qtr |
206CCA avoidance
Check AIS
Specified person flag.
File ITR
Belated if missed.
26AS verify
TCS credits.
Purchase
After flag cleared.
Claim credit
TCS in ITR.
Flow
206CCA kit
- AIS download.
- Prior ITR ack.
- PAN.
- 26AS.
- Purchase invoice.
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Car purchase trap
Dealer may collect 206CCA TCS on delivery if you are still flagged — file ITR before booking.
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Who is specified person?
Non-filer for two preceding years with aggregate TDS/TCS ≥ INR 50,000.
Buyer or seller?
206CCA is buyer-side higher TCS collected by seller.
How to remove?
File ITR for missing years — list updates quarterly.
206AB difference?
206AB is higher TDS when you receive payments; 206CCA is higher TCS when you pay.
Claim TCS?
TCS appears in Form 26AS — claim against tax in ITR.
RNOR?
Specified person check applies once you are Indian resident with PAN.
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.