Luxury Goods Costing Above ₹ 10 Lakh Will Now Attract 1% Tax Collected at Source

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Luxury Goods LIKE HANDBAGS, Wrist Watches, Footwear, and Sportswear, Priceed Above ₹ 10 Lakh Will Now Attract A 1% Tax Colleted At Source (TCS).

The income tax department has notified the application of tcs at the rate of 1% on sale of specified luxury Goods, where the seling price exceeds ₹ 10 Lakh with Effects Effects ₹ 10 Lakh with Effects.

The TCS Provision for Luxury Goods was Introduced Via Finance Act, 2024, as part of the budget presented in July, 2024.

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The obligation to collect tcs shall be on the seller in response of the notified Goods Such as Wrist Watch, Art Objects Such as Paintings, Sculptures, and Antiques, Collectable Items Inacluding Coins and Stamps, Yachts, Helicopters, Luxury Handbags, Sunglasses, Footwear, High-Ed Sportswear and Equipment, Home TheATRE Systems, and Horses Intended for Racing or Polo.

Nangia Andersen llp tax partner Sandeep Jhunjhunwala, said this notification operationalies the government’s intent to enhance monitoring of high-value discretionary experience and strengthing Goods segment.

It reflects a broader policy objective of expanding the tax base and promoting great transfer financial transparency.

“Sellers will now be required to ensure timely compliance with tcs provisions, while buyers of notified luxury Goods May Experience Enhance Kyc Requirements and DoCUMENTION ATE Purchase.

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“Although the luxury Goods sector may undergo some transitional challenges, this measure is expected to promote formalization and improved regulatory oversight over time,” Jhunjhunwala added.