Context:
The Central Board of Direct Taxes (CBDT) has notified a 1% Tax Collected at Source (TCS) on the sale of specified luxury goods priced above ₹10 lakh, effective from April 22, 2025. (Luxury Buys Over Rs 10 Lakh To Attract 1% TCS From 22 April)
Key Details:
- Applicability: Sellers are required to collect 1% TCS from buyers at the time of receiving payment for the specified luxury goods.
- Threshold: The TCS applies to individual items priced above ₹10 lakh.
- Specified Goods: While the exact list of goods has been notified, examples include high-end wristwatches, luxury handbags, and other premium items. (Tax to be Collected on Luxury Goods Above Rs. 10 Lakh Starting in 2025)
- Objective: This measure aims to enhance tax transparency and track high-value transactions. (New Tax Rules: Luxury Goods Over Rs 10 Lakh to Face 1% TCS – Read Here to Know)
