1% TCS On Luxury Goods Worth Over Rs 10 L

New Delhi: Luxury goods like handbags, wrist watches, footwear and sportswear, priced above Rs10 lakh will now attract a one per cent Tax Collected at Source (TCS).

The Income-Tax (I-T) department has notified the applicability of TCS at the rate of one per cent on sale of specified luxury goods, where the selling price exceeds Rs10 lakh with effect from April 22, 2025.

The TCS provision for luxury goods was introduced via Finance Act, 2024, as part of the Budget presented in July, 2024.