Tax New Rules: The seller will deduct 1% TCS and deposit the tax on your PAN number. This amount will be shown in your Form 26AS. You can claim it as tax credit while filing ITR. If you do not have any tax liability, then this amount will be refunded to you.

TCS Product

If you are going to buy a luxury bag, expensive watch, branded shoes or golf kits which cost more than ₹ 10 lakh, then you will now have to pay 1% tax – which is called Tax Colleted at Source (TCS). This rule has been implemented from 22 April 2025. The Incoming Tax Department has released a new list, which will take 1% TCS on the purchase of luxury goods – if the price is more than ₹ 10 lakh.

Which things are applicable to TCS- If the price of these goods is above ₹ 10 lakh, then TCS will be:-Wrist Watch, Art Pais, Paintings, Sculptures, COINS, Stamps, Yats, Hyrichopters, Boat (ROWING BOATS, Canges), sunglasses, handbags, purses, shoes, sports gear (GOLF KIT, SKI-wait), home theater system, racing or polo for polo.

government-this scheme

If PAN is not given then the rate of TCS will be 20%. That is, you will have to pay ₹ 2 lakh TCS on the purchase of ₹ 10 lakh! This wants the government to stop unknown transactions.

What is the objective of the government-this scheme is not to increase revenue. It is aimed at increasing tax clearing, ensuring income traceability, under-reporting and tax evasion. If you are luxury hobbies, do not forget to give PAN number in your shopping-so that tax hazings can be avoided later.