{"id":288649,"date":"2025-04-23T18:46:19","date_gmt":"2025-04-23T18:46:19","guid":{"rendered":"https:\/\/news.talkwithrattan.com\/index.php\/2025\/04\/23\/buying-luxury-goods-handbags-wrist-watches-footwear-other-items-above-rs-10-lakh-to-now-attract-1-tcs-times-of-india\/"},"modified":"2025-04-23T18:46:20","modified_gmt":"2025-04-23T18:46:20","slug":"buying-luxury-goods-handbags-wrist-watches-footwear-other-items-above-rs-10-lakh-to-now-attract-1-tcs-times-of-india","status":"publish","type":"post","link":"https:\/\/news.talkwithrattan.com\/index.php\/2025\/04\/23\/buying-luxury-goods-handbags-wrist-watches-footwear-other-items-above-rs-10-lakh-to-now-attract-1-tcs-times-of-india\/","title":{"rendered":"Buying luxury goods? Handbags, wrist watches, footwear & other items above Rs 10 lakh to now attract 1% TCS – Times of India"},"content":{"rendered":"
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Handbags<\/a>, wrist watches<\/a>, footwear and sportswear priced above Rs 10 lakh will now attract a 1% tax collected at source (TCS). In a notification released on April 22, 2025 the income tax department detailed categories which will now be subjected to this TCS.
Although TCS doesn\u2019t result in any additional revenue, the move is aimed at improving the income tax department\u2019s ability to track high-value purchases, since PAN details are mandatory at the time of purchase. The TCS paid can be adjusted against the buyer\u2019s final tax liability when filing returns.
List of luxury items above Rs 10 lakh under the 1% TCS<\/span>
Accessories: Wrist watches, sunglasses, shoes and handbags
Art pieces: Sculptures, antiques, paintings
Collectables: Coin, stamp
Transportation: Rowing boat, canoe, helicopter, yachts
Sports gear: Golf kits, ski-wear
Home theatre system
Horses for racing and polo games<\/p>\n

The provision for luxury goods and motor vehicles costing more than Rs 10 lakh was introduced through Finance Act 2024, as part of the Union Budget presented in July last year.
Tax experts believe the step will improve transparency and tighten the loop around discretionary spending<\/a>.
Sandeep Jhunjhunwala, tax partner at Nangia Andersen LLP, told PTI that the notification strengthens the government’s aim to closely monitor high-value discretionary spending and improve the audit trail within the luxury goods segment.
\u201cSellers will now be required to ensure timely compliance with TCS provisions, while buyers of notified luxury goods may experience enhanced KYC requirements and documentation at the time of purchase.\u201d
He further added, although the sector may undergo some transitional challenges, this measure is expected to promote formalisation and improved regulatory oversight over time,
\u201cThis will enhance the traceability of luxury spending,\u201d said Amit Maheshwari, tax partner at AKM Global. Additionally, he said, by bringing high-value items into the TCS framework with a 1% rate, the government is widening the tax net beyond just motor vehicles.<\/div>\n