logo
Watches, art, bags, sportswear over Rs 10 lakh? Say hello to 1% TCS

Watches, art, bags, sportswear over Rs 10 lakh? Say hello to 1% TCS

Luxury shoppers, take note: If you're eyeing that limited-edition wristwatch, high-end handbag, or luxury yacht, be prepared to pay a little extra—not as a cost, but as a tax trail. Starting April 22, 2025, the Income Tax Department will levy a 1% Tax Collected at Source (TCS) on high-value luxury goods priced above Rs 10 lakh.
"The much-anticipated notification on TCS on luxury goods brings clarity on scope and thresholds. Effective April 22, 2025, the levy applies to notified products exceeding ₹10 lakh in value with tax applicable on the full transaction amount in excess of Rs 10 lakh.. This move is a strategic step towards enhancing tax transparency and tracking high-value consumption trends, a move that aligns with global trends in tax surveillance and tax transparency," said Munjal Almoula, Head of Tax, BDO India.
This move is part of the government's larger effort to trace big-ticket spending, widen the tax base, and bring greater transparency to luxury purchases.
According to the notification issued on April 22, 2025, the following luxury items will now attract 1% TCS if they are sold for ₹10 lakh or more:
Luxury handbags
Wrist watches
Footwear and high-end sportswear
Designer sunglasses
Art pieces (paintings, sculptures, antiques)
Collectibles (coins, stamps)
Yachts, helicopters
Race or polo horses
Home theatre systems
Already, motor vehicles priced above Rs 10 lakh have been under the TCS net since the beginning of 2025.
How Does TCS Work?
Collected by the seller at the time of purchase
Charged at 1% of the sale price (on items above Rs 10 lakh)
Adjusted against your total income tax at the time of filing returns
Requires PAN submission at the time of transaction
Example: Buying a luxury handbag worth Rs 12 lakh? The seller will collect Rs 12,000 (1%) as TCS, which will be credited against your total tax liability when you file your income tax return.
Why this matters
While TCS doesn't increase your tax burden, it helps the government keep track of high-value discretionary purchases. The goal is to create a digital footprint of expensive buys and encourage people to declare their real financial status.
"The notification operationalises the government's intent to monitor high-value discretionary spending and improve audit trails in the luxury sector,' said Sandeep Jhunjhunwala, Tax Partner at Nangia Andersen LLP.
What This Means for Buyers
Be ready for more KYC requirements at luxury outlets
Ensure your PAN details are updated
TCS will be visible in your Form 26AS (tax credit statement)
Keep purchase receipts for tax filing reference
This rule doesn't change your actual tax liability—it just brings luxury purchases under the tax department's radar. It's part of the government's effort to formalise the economy and ensure financial transparency, especially in sectors where cash transactions and unreported income have been common.

Orange background

Try Our AI Features

Explore what Daily8 AI can do for you:

Comments

No comments yet...

Related Articles

Ranchi vendor markets sinking under choked drains, unhygienic surroundings, & poor infra
Ranchi vendor markets sinking under choked drains, unhygienic surroundings, & poor infra

Time of India

time40 minutes ago

  • Time of India

Ranchi vendor markets sinking under choked drains, unhygienic surroundings, & poor infra

1 2 Ranchi: The city's main vendor markets, especially Naga Baba Khatal and Kokar, are characterised by choked drains, unhygienic surroundings, and poor infrastructure. These public spaces remain on the margins of municipal attention in spite of being important areas in a civilised society. A vendor at Rs 10.86-crore valued Naga Baba Khatal Vendor Market, Rekha Devi, said, "Overflowing drains, stagnant water, and heaps of rotting vegetables have turned the area unbearable. Even a small shower turns this place into a filthy swamp. The stink is terrible. Customers avoid coming here." Echoing the statement, customer Neha Kumari said, "The area lacks drainage system. We have to walk in muck mixed with vegetable waste. Toilets are barely usable, especially for women." At Kokar Vendor Market, vendors operate beside garbage piles and blocked drains. "The waste isn't picked up regularly, turning into heaps and lying scattered with rainwater," said Imran, a fruit seller. The Atal Vendor Market, built at a cost of Rs 54 crore with 478 shops, is structurally better but overcrowded. Vendors and customers struggle to navigate narrow congested passages. "There's no space to walk during rush hours, especially when shopkeepers display goods outside their stalls," said Arun Kumar, a vendor. Though these markets were constructed to decongest roads and fight encroachments, their neglected condition is forcing vendors back onto roads and footpaths. "The markets helped control encroachment to some extent. However, the vendors prefer doing their business from the roadside, where footfall is higher and conditions are manageable," said Shabnam Ansari, a vendor at Naga Baba Market. Assistant municipal commissioner Nikesh Kumar said, "Each market has four to five cleaning staff. Restoration files have been submitted to the authorities. Upgradation of infrastructure would begin based on approval." "For hundreds of vendors and thousands of customers, restoring hygiene and functionality in these markets isn't about comfortbut survival," said Ritu Sinha, another customer at the Atal Vendor Market.

After SC order, MMRDA seeks price bids from L&T on projects
After SC order, MMRDA seeks price bids from L&T on projects

Time of India

time40 minutes ago

  • Time of India

After SC order, MMRDA seeks price bids from L&T on projects

Mumbai: Nearly two weeks after MMRDA informed Supreme Court that it had "in public interest" scrapped its tenders for the Thane-Ghodbunder-Bhayander twin tunnel and elevated road projects—collectively estimated at Rs 14,000 crore—the planning authority has sought detailed financial estimates from infrastructure giant Larsen & Toubro (L&T). Tired of too many ads? go ad free now The projects include an underground road tunnel from Gaimukh to Fountain Hotel Junction on Ghodbunder Road and an elevated road from Fountain Hotel Junction to Bhayander. Sources said MMRDA sent a letter on June 10 asking L&T to submit detailed financial estimates/price bids, rate analysis and justification and related documents in seven working days "to ensure completeness of the bid records" and "further transparency and public interest". The tender process for the projects had landed in court after MMRDA disqualified L&T from the technical bids round by declaring it non-responsive, saying it had failed to submit a mandatory affidavit. The affidavit required bidders to declare that none of their bridges had collapsed within two years of completion. Megha Engineering and Infrastructure, a prominent purchaser of electoral bonds prior to being scrapped by the apex court, was declared the successful bidder. L&T then moved Bombay HC, alleging lack of clarity over the rejection and the decision not to open its financial bids. HC granted a temporary stay on the opening of price bids on May 13 but dismissed L&T's petitions on May 20, observing "material suppression" by the company. The court upheld MMRDA's tendering process. L&T approached SC, which expressed surprise that technical bids of a firm that had built Central Vista and Atal Setu had been rejected. Tired of too many ads? go ad free now The company disclosed during the proceedings that its quoted prices were significantly lower—Rs 6,498 crore for the tunnel and Rs 5,554 crore for the elevated road. SC was informed that the difference was over Rs 3,100 crore between the lowest bidder and L&T. The bench asked MMRDA how L&T could be technically disqualified from the projects in that case and directed it to check with the state govt if it was willing to re-tender the projects. SC disposed of L&T's petition after MMRDA agreed to re-tender the projects. MMRDA has since maintained that both SC and HC had upheld its submission, but that in deference to the courts and in line with its institutional commitment to transparency, it was decided that both tenders would be scrapped and a fresh tender process would be initiated. In its June 10 letter, it said it had decided to voluntarily scrap the tenders and revise cost estimates in the "spirit of transparency and larger public interest. "

Crippled by Op Sindoor strikes, Pak eyeing Germany for air defence upgrades
Crippled by Op Sindoor strikes, Pak eyeing Germany for air defence upgrades

India Today

timean hour ago

  • India Today

Crippled by Op Sindoor strikes, Pak eyeing Germany for air defence upgrades

Rattled by the devastating impact of BrahMos missile strikes during India's Operation Sindoor, Pakistan is now exploring the procurement of a new air defence system to counter future to sources, Islamabad is actively considering the purchase of the IRIS-T SLM air defence system from Germany in a bid to strengthen its aerial shield against India's supersonic cruise missiles, particularly the move comes after Pakistan's existing Chinese-origin air defence systems, including the HQ-9 and HQ-16, failed to detect or intercept Indian missile attacks during the operation. In contrast, the IRIS-T SLM system has demonstrated significant effectiveness in recent combat situations. In Ukraine, where several units were redirected from Egypt due to the ongoing war, the German-made system has reportedly shot down over 60 aerial targets since its deployment last it was said to have successfully intercepted Russian Oniks missiles, which are similar in profile to India's by Diehl Defence, the IRIS-T SLM is known for its modular and compact architecture. Each unit, estimated to cost around USD 200 million, includes radar, an operations centre, and launchers, all mounted on a 20-foot interest in the system highlights its urgent push to rebuild and upgrade its air defence network, particularly after key air bases were damaged by Indian missiles during Operation grappling with a severe economic crisis, Pakistan has raised its defence budget by 18 per cent this year while simultaneously scrapping domestic development projects valued at 1,000 billion Pakistani the past month, the country has secured financial assistance totalling USD 1.8 billion from the International Monetary Fund (IMF) and the Asian Development Bank (ADB) to address its fiscal Germany's Diehl Defence, the maker of the IRIS-T SLM, is also involved in a major Indian defence initiative. The company is collaborating with Thyssenkrupp Marine Systems on Project 75I, a Rs 70,000 crore programme to build six submarines for the Indian Indian-German collaboration also includes the development of the Interactive Defence and Attack System (IDAS), which will be integrated into the India's Reliance Defence has announced a partnership to manufacture Vulcano 155mm precision-guided artillery shells domestically. The initiative is expected to generate revenues of approximately Rs 10,000 crore, with over 50 per cent of the components to be produced indigenously.

DOWNLOAD THE APP

Get Started Now: Download the App

Ready to dive into the world of global news and events? Download our app today from your preferred app store and start exploring.
app-storeplay-store