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Hans India
09-05-2025
- Business
- Hans India
I-T dept slaps 1% TCS on select luxury goods
Mumbai: The Income-Tax Department has issued a notice stating that 1 per cent TCS (tax collected at source) will be imposed on sale of certain luxury goods priced above Rs 10 lakh effective from April move is a strategic step towards enhancing tax transparency and tracking high-value consumption trend. Talking to Bizz Buzz, Samir Jani, president, All India Federation of Tax Practitioners says, 'The I-T Dept would be mapping on expenditure.' If you are buying items above Rs10 lakh and not showing the same in your I-T Return, then the Dept can catch hold of you. However, there will not be any problem with the honest taxpayers, he said. Effective April 22, the levy applies to notified products exceeding Rs10 lakh in value with tax applicable on the full transaction amount in excess of Rs10 lakhs. Munjal Almoula, head of tax, BDO India says: 'The much-anticipated notification on TCS on luxury goods brings clarity on scope and thresholds.' 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, he said. In fact, 1% TCS had already been implemented. The only thing that new items have come under its ambit now.
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Business Standard
24-04-2025
- Business
- Business Standard
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.
The Print
23-04-2025
- Business
- The Print
Several luxury items, including watches, sunglasses, costing above Rs 10 lakh to attract 1% Tax Collected at Source
As per an official notification, wrist watch, art piece (antiques, painting, sculpture), collectibles (coin, stamp), yacht, rowing boat, canoe, helicopter, sunglasses, handbag, purse, shoes, sportswear and equipment such as golf kit and ski wear, home theatre system, any horse for horse racing in race clubs and polo will attract such special tax. New Delhi [India], April 23 (ANI): Several luxury goods costing above Rs 10 lakh will now attract Tax Collected at Source (TCS) at 1 per cent. The notification shall take effect immediately. TCS, or Tax Collected at Source, is a tax payable by the seller but collected from the buyer. '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,' Munjal Almoula, Head of Tax at consultancy firm BDO India. (ANI) This report is auto-generated from ANI news service. ThePrint holds no responsibility for its content.
India Gazette
23-04-2025
- Business
- India Gazette
Several luxury items, including watches, sunglasses, costing above Rs 10 lakh to attract 1% Tax Collected at Source
ANI 23 Apr 2025, 21:40 GMT+10 New Delhi [India], April 23 (ANI): Several luxury goods costing above Rs 10 lakh will now attract Tax Collected at Source (TCS) at 1 per cent. As per an official notification, wrist watch, art piece (antiques, painting, sculpture), collectibles (coin, stamp), yacht, rowing boat, canoe, helicopter, sunglasses, handbag, purse, shoes, sportswear and equipment such as golf kit and ski wear, home theatre system, any horse for horse racing in race clubs and polo will attract such special tax. The notification shall take effect immediately. TCS, or Tax Collected at Source, is a tax payable by the seller but collected from the buyer. '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,' Munjal Almoula, Head of Tax at consultancy firm BDO India. (ANI)
India Today
23-04-2025
- Business
- India Today
From watches to antiques, these luxury goods above Rs 10 lakh face 1% TCS
A 1% Tax Collected at Source (TCS) will now apply to high-end goods priced above Rs 10 lakh from from April 22, 2025, following amendments introduced in the Finance Act, 2024. The Central Board of Direct Taxes (CBDT) has issued fresh guidelines to enforce the levy, which aims to plug tax leaks and boost visibility on big-ticket you're buying a designer handbag, a vintage watch, a yacht, or even a racehorse—if the price tag crosses Rs 10 lakh, the seller is now required to collect TCS and deposit it against your PAN. Buyers can later claim this tax as credit while filing their income tax returns, similar to how TDS functions for a look at what's covered:Luxury wristwatchesArtworks and antiques, including paintings and sculpturesCollectibles like rare coins and stampsBoats, yachts, canoes, and helicoptersHigh-end handbags, sunglasses, and designer shoesPremium sports gear such as golf kits and ski wearHome theatre systemsHorses used in racing and poloThe tax is collected on the entire transaction amount, not just the portion exceeding Rs 10 lakh. For example, a Rs 25 lakh purchase will trigger a Rs 25,000 TCS. The rule closely mirrors existing provisions for luxury cars and motor vehicles above Rs 10 to Munjal Almoula, Head of Tax at BDO India, 'The notification brings much-needed clarity. It reflects India's strategic pivot towards strengthening its tax intelligence network and tracking discretionary spending—something many advanced economies already do.'Alongside the financial hit, expect tighter compliance at the point of sale. Sellers will require valid PAN details and may seek additional KYC documentation before processing the purchase. Buyers will also receive a TCS certificate once the tax has been deposited, making it easier to claim during ITR move is less about revenue collection and more about laying down a digital trail for luxury consumption. It's part of the government's broader effort to widen the tax base, deepen financial transparency, and keep tabs on high-net-worth spending patterns in an increasingly aspirational India. advertisement
