CBDT Revises Form 27EQ: TCS Applicable on Luxury Items including Sale of Yacht, Home Theater [Read Notification]

The Central Board of Direct Taxes (CBDT), through Notification No. G.S.R. 252(E) dated 22nd April 2025, has notified amendments to Form 27EQ under the Income-tax Act, thereby expanding the scope of Tax Collected at Source (TCS).

As per the notification, TCS will now be applicable on transactions involving high-value goods such as wristwatches, home theatre systems, and collectibles including coins and stamps. These changes are introduced under the Income-tax (Eleventh Amendment) Rules, 2025.

Unlock the full scope of TDS & TCS with the 2025 amendments from The Finance Act, Click here

Newly Added Items Subject to Collection at Source

The amendment inserts several new items in the Income-tax Rules, 1962, specifically in Form No. 27EQ, Annexure, Note 11. These items now require collection of tax at source on their sale, showing the government’s intent to widen the tax base. The newly added categories include:

• Wrist watches
• Art pieces such as antiques, paintings, sculptures
• Collectibles including coins and stamps
• Yachts, rowing boats, canoes, helicopters
• Sunglasses (pairs)
• Bags such as handbags and purses
• Shoes (pairs)
• Sportswear and equipment such as golf kits and ski-wear
• Home theatre systems
• Horses used for horse racing in race clubs and polo

Unlock the full scope of TDS & TCS with the 2025 amendments from The Finance Act, Click here

The same shall be inserted after the row relating to “Collection at source on sale of motor vehicle”.  The table notified in the notification  is as follows;

“206C	Collection at source on sale of wrist watch	6C	MA
206C	Collection at source on sale of art piece such as antiques, painting, sculpture	6C	MB
206C	Collection at source on sale of collectibles such as coin, stamp	6C	MC
206C	Collection at source on sale of yacht, rowing boat, canoe, helicopter	6C	MD
206C	Collection at source on sale of pair of sunglasses	6C	ME
206C	Collection at source on sale of bag such as handbag, purse	6C	MF
206C	Collection at source on sale of pair of shoes	6C	MG
206C	Collection at source on sale of sportswear and equipment such as golf kit, ski-wear	6C	MH
206C	Collection at source on sale of home theatre system	6C	MI
206C	Collection at source on sale of horse for horse racing in race clubs and horse for polo	6C	MJ”

To Read the full text of the Order CLICK HERE

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