24-04-2025
Buying A Handbag, Watch Or Sunglasses Over Rs 10 Lakh Will Now Attract 1% TCS
Thinking of buying something over Rs 10 lakh? You will have to pay a small tax. In a notification released by the Income Tax Department on April 22, 1 percent Tax Collected at Source (TCS) will be levied on luxury items priced over Rs 10 lakh.
TCS is the tax payable by a seller which he collects from the buyer at the time of sale.
List of luxury goods that fall under the 1% TCS
Art pieces: Antiques, painting, sculptures
Accessories: Wrist watches, sunglasses, handbags, and shoes
Collectables: Coins and stamps
Sportswear: Golf-kit, ski-wear
Transportation: Yacht, rowing boat, canoe, helicopter
Home theatre system
Horses for racing and polo games
📢CBDT Notification Alert!
➡️New rules issued for Tax Collection at Source (TCS) on the purchase of certain goods.
✅Notification S.O. 1825(E) dated 22.04.2025 published in
🔗The Notification can be accessed at:
— Income Tax India (@IncomeTaxIndia) April 23, 2025
What it means: When you're buying luxury goods worth Rs 10 lakh or above, you will have to pay an additional 1% TCS on the amount. The move is not for additional revenue but to expand the taxpayer base and ensure accurate income disclosures.
It is believed that many professionals and business owners under-report their income to avoid taxation. Now, the government has intensified its focus on high-value transactions to cross-check tax returns with actual purchases and prompt individuals to update their tax filings accordingly.
'This notification extends TCS coverage to luxury goods and collectibles, improving traceability of high-end spending,' Amit Maheshwari, tax partner at AKM Global, a tax and consulting firm told the Times of India.
Effective immediately, the government will be collecting this tax. This move is expected to help the government keep a closer eye on the purchase and sale of luxury goods.
