1% TCS on Luxury Goods Above Rs 10 Lakh From April 22, 2025
Why in the news
The CBDT brought in a 1% TCS on certain expensive luxury goods, with the rule starting on 22 April 2025.
Key facts
- Notified by: Central Board of Direct Taxes (CBDT).
- Rate: 1% TCS.
- Effective from: 22 April 2025.
- Threshold: items priced above Rs 10 lakh, assessed per item.
- Who collects: the seller, when payment is received from the buyer.
- Examples of goods: high-end wristwatches, luxury handbags and other premium items.
Objective
The measure is meant to improve tax transparency and help trace high-value transactions.
Exam angle
- TCS stands for Tax Collected at Source.
- Authority: CBDT.
- Key numbers: 1% and Rs 10 lakh.