1% TCS On Sale Of Certain Luxury Goods

Mumbai: The Income Tax Department has issued a notice stating that 1 per cent TCS will be imposed on sale of certain luxury goods priced above Rs10 lakh effective from April 22. This move is a strategic step towards enhancing tax transparency and tracking high-value consumption trend.

Talking to Bizz Buzz, Samir Jani, president, All India Federation of Tax Practitioners says, “The I-T Deptt would be mapping on expenditure.”

If you are buying items above Rs10 lakh and not showing the same in your I-T Returns, then the department can catch hold of you. However, there will not be any problem with the honest taxpayers, he said.

Effective April 22, the levy applies to notified products exceeding Rs10 lakh in value with tax applicable on the full transaction amount in excess of Rs10 lakh.