09-05-2025
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.
