I have invested almost 10L now. I was about to put more 3L in vested and I can see there is 11k TCS charged.
I have also heard that we can claim this in ITR refund?
is it true? can someone share their experience on this?
You will get refund of TCS when you file your tax return
TCS has to be mentioned in the TCS schedule of the ITR. I have had TCS withheld in some past years, thought it wasn’t for Vested or Foreign Equity investments. While filing the ITR, besides TDS, one has to mention the TCS along with all details in the TCS schedule. The details of TCS are available on 26AS too. IF your tax liability is less than the sum of TDS, TCS and Taxes paid in Advance(or self assessment), the excess amount is duly refunded (along with interest if applicable) once your ITR is processed. Do not worry, but ensure you report all details properly in the ITR.
Yes, the 11k is most likely TCS (Tax Collected at Source) under the Liberalised Remittance Scheme when sending money abroad.
A few important things to know:
• TCS is not an extra permanent tax in most cases
• It gets reflected against your PAN in Form 26AS / AIS
• You can usually adjust it against your total tax liability while filing ITR
• If your final tax liability is lower, the excess can be claimed as a refund
Example:
If your total tax payable for the year is ₹80k and ₹11k TCS has already been collected, then effectively only ₹69k remains payable.
A lot of investors using global investing platforms do claim this adjustment/refund while filing returns.
Just make sure:
• PAN linked correctly
• TCS reflects in AIS/26AS
• Keep remittance proofs / statements handy
If you already pay decent income tax via salary/business income, usually this just gets adjusted there itself.
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