If you’re eyeing luxury products priced above ₹10 lakh – think premium handbags, designer shoes, swanky watches, or top-tier sportswear – get ready to pay a little extra!
The government has announced a 1% Tax Collected at Source (TCS) on the sale of high-end luxury goods costing more than ₹10 lakh. This tax will be collected directly at the source – i.e., the seller will deduct it during the transaction itself.
This move expands on the existing policy where motor vehicles priced above ₹10 lakh already attract a 1% TCS. The Income Tax Department officially notified this update on April 22, 2025.
🛍️ What All Will Be Covered? The new TCS rule will apply to:
-
Luxury watches
-
Paintings & antiques
-
Sculptures and collectible items
-
Tickets for private yachts, helicopters
-
High-end handbags
-
Designer sunglasses
-
Premium shoes
-
Exclusive sports gear
-
Home theatre systems
-
Horses for races and shows
📄 Important to Know:
-
Buyers must include this TCS in their tax return, which may later be adjusted against their final tax payable.
-
This tax doesn’t add any extra government revenue, but it helps track high-value purchases and curb black money.
-
The TCS is only applicable when the product value exceeds ₹10 lakh at the time of sale.
💡
