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Apr 25, 2025
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New 1% TCS on luxury goods: Full list, limits & FAQs - what the new rule means for you
The Central government has introduced changes to the Income Tax Act, 1961, expanding the scope of the Tax Collected at Source (TCS) on luxury goods. Starting April 22, 2025, TCS will be applicable to 'specified range' of luxury goods valued over ten lakh rupees, including items like wristwatches, art pieces, yachts, and more.
Below are comprehensive FAQs on the new provisions, along with the list of luxury goods that will be subject to TCS:
What changes were brought in section 206C(1F) of the Income Tax Act, 1961 through Finance (No. 2) Act, 2024?
Earlier, Section 206C(1F) provided for collection of TCS on the sale of motor vehicles of value exceeding Rs 10 lakh.
Through the Finance (No. 2) Act, 2024, Section 206C(1F) was amended to include a wider range of luxury goods.
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