TCS: Now it has become even more expensive for people to buy luxury items. Under the new rule of the government, now on purchasing more than 10 lakh rupees items, now 1 percent TCS i.e. tax collection on source will have to be given. The Income Tax Department has implemented this new rule, which has also been implemented from 22 April 2025. In such a situation, if you buy any luxury thing like bags, clock, shoes, clothes, which costs more than 10 lakh rupees, then you will now have to pay 1 percent TCS on that thing.
What is TCS?
TCS is the tax that collects a seller from you, when you buy something. When you fill your ITR i.e. income tax return, then you mix this tax in your tax liability. The advantage of this is that the imposition of this tax helps the government to know the information of your big expenses because while buying, PAN card has to be given information. However, the government does not earn much from this tax.
Let us tell you that earlier TCS was applicable to vehicles worth more than 10 lakh rupees, which was implemented on 1 January 2025 but now it has also been applied to more than 10 lakh things. This rule was brought in the budget of July 2024 by the Finance Minister.
1 percent TCS on these things more than 10 lakhs
More than 10 lakh items join luxury items. In this case, these things include clock, handbags, shoes, clothes, paintings, glasses, old coins, home theater systems, sportswear, helicopter, boat, tickets, idols and horses of polo.