TCS Applicable on Luxury Goods Above ₹10 Lakh from April 22, 2025: CBDT New FAQs
CBDT clarifies via FAQs that TCS will apply from April 22, 2025, on sale of luxury goods like watches, art, yachts, and collectibles priced above Rs. 10 lakh per item.
The Central Board of Direct Taxes (CBDT) has issued a detailed Frequently Asked Questions (FAQs) document clarifying the applicability of Tax Collected at Source (TCS) on the sale of high-value luxury goods under the amended provisions of section 206C(1F) of the Income-tax Act, 1961. Earlier, TCS under section 206C(1F) was restricted to the sale of motor vehicles valued above Rs. 10...
The Central Board of Direct Taxes (CBDT) has issued a detailed Frequently Asked Questions (FAQs) document clarifying the applicability of Tax Collected at Source (TCS) on the sale of high-value luxury goods under the amended provisions of section 206C(1F) of the Income-tax Act, 1961.
Earlier, TCS under section 206C(1F) was restricted to the sale of motor vehicles valued above Rs. 10 lakh. However, following amendments introduced through the Finance (No. 2) Act, 2024, the scope of TCS has now been extended to cover a wider range of luxury goods.
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The FAQs specify that TCS will now apply to the sale of the following luxury goods when the value exceeds Rs. 10 lakh per item:
- Wristwatches
- Art pieces such as antiques, paintings, sculptures
- Collectibles such as coins and stamps
- Yachts, rowing boats, canoes, and helicopters
- Sunglasses
- Bags including handbags and purses
- Pairs of shoes
- Sportswear and equipment such as golf kits and ski-wear
- Home theatre systems
- Horses for horse racing or polo
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Applicability on Single Item Sales
One of the key questions addressed is whether TCS will apply to the sale of a single item from the notified categories if its value exceeds Rs. 10 lakh. The answer is yes, TCS will be levied even on the sale of a single unit if its price crosses the specified threshold.
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The provisions clarified through the FAQs are effective from April 22, 2025, which is the date when the relevant notification was published.
To Read the full text of the FAQ CLICK HERE
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