TCS on Products: Luxury goods such as handbags, wrist clocks, shoes and sportswear (sports wearing products), costing one million rupees from one million rupees, will now have one per cent ‘tax collection’ (TCS). The Income Tax Department has notified TCS’s prevention at the rate of one per cent on the sale of specific luxury goods from Rs 10 lakh from April 22, 2025.
What will be the TCS?
The TCS provision for luxury (luxury) items was introduced as part of the budget presented in July 2024 through Finance Act, 2024. The responsibility of collecting TCS will be on the seller, which will be related to notified objects such as wrist clock, art items such as paintings, sculptures and antiquities, collectable objects such as coins and tickets, boats, helicopters, luxury handbags, sunglasses, sunglasses, shoes, sports apparel and equipment, home theater system and horses for polo etc.
Promoting most financial transparency
Nangia Anderson LLP tax partner Sandeep Jhunjhunwala said that this notification explains the intention of the government to increase the monitoring of the higher priced expenditure and strengthen the audit in the luxury goods segment. This reflects a comprehensive policy objective of expanding the base by notification and promoting most financial transparency.