look news india
Tax collection (TCS) will now be imposed on one percent source of luxury items like handbags, watches, shoes and sports clothing worth more than Rs 10 lakh.
Currently, TCS is being imposed at a rate of one percent on motor vehicles worth more than Rs 10 lakh from January 1, 2025.
The Income Tax Department has issued a notification to impose one percent TCS on the sale of special luxury goods worth more than Rs 10 lakh from April 22, 2025.
TCS is collected from the buyer at the time of sale of the specified goods and adjusted to the buyer’s tax amount when filing income tax returns.
No additional revenue is obtained from TCS, but this helps the Income Tax Department to get information about high value expenditure, as PAN number is to be given at the time of shopping.
Through the Finance Act, 2024, the provision of TCS for luxury goods and motor vehicles worth more than Rs 10 lakh was presented in the budget of July 2024.
The seller will be responsible for collecting TCS. It will apply to horses for luxury items such as wrist clocks, paintings, sculptures, antiquities, coins, tickets, boats, helicopters, luxury handbags, sunglasses, shoes, high -grade games and equipment, home theater system, and horses for racing or polo.