{"id":29204,"date":"2025-04-25T23:09:27","date_gmt":"2025-04-25T17:39:27","guid":{"rendered":"https:\/\/carajput.com\/blog\/?p=29204"},"modified":"2026-02-08T02:24:24","modified_gmt":"2026-02-07T20:54:24","slug":"cbdt-announces-1-tcs-on-luxury-goods-above-inr-10-lakh","status":"publish","type":"post","link":"https:\/\/carajput.com\/blog\/cbdt-announces-1-tcs-on-luxury-goods-above-inr-10-lakh\/","title":{"rendered":"CBDT Announces 1% TCS on Luxury Goods Above INR 10 Lakh"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_58 counter-hierarchy ez-toc-counter ez-toc-light-blue ez-toc-container-direction\">\n<p class=\"ez-toc-title\">Page Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-69d5f34b49eed\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #000000;color:#000000\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #000000;color:#000000\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-69d5f34b49eed\"  aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/carajput.com\/blog\/cbdt-announces-1-tcs-on-luxury-goods-above-inr-10-lakh\/#CBDT_Announces_1_TCS_on_Luxury_Goods_Above_INR_10_Lakh\" title=\"CBDT Announces 1% TCS on Luxury Goods Above INR 10 Lakh\">CBDT Announces 1% TCS on Luxury Goods Above INR 10 Lakh<\/a><ul class='ez-toc-list-level-3'><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/carajput.com\/blog\/cbdt-announces-1-tcs-on-luxury-goods-above-inr-10-lakh\/#Amendment_to_Section_206C1F_of_the_Income_Tax_Act_1961_via_Finance_No_2_Act_2024_Corresponding_CBDT_Notification_No_362025\" title=\"Amendment to Section 206C(1F) of the Income Tax Act, 1961 via Finance (No. 2) Act, 2024, &amp; Corresponding CBDT Notification No. 36\/2025:\">Amendment to Section 206C(1F) of the Income Tax Act, 1961 via Finance (No. 2) Act, 2024, &amp; Corresponding CBDT Notification No. 36\/2025:<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/carajput.com\/blog\/cbdt-announces-1-tcs-on-luxury-goods-above-inr-10-lakh\/#Threshold_for_Applicability\" title=\"Threshold for Applicability : \">Threshold for Applicability : <\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/carajput.com\/blog\/cbdt-announces-1-tcs-on-luxury-goods-above-inr-10-lakh\/#Tax_Collected_at_Source_Rate_on_Luxury_Goods\" title=\"Tax Collected at Source Rate on Luxury Goods : \">Tax Collected at Source Rate on Luxury Goods : <\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/carajput.com\/blog\/cbdt-announces-1-tcs-on-luxury-goods-above-inr-10-lakh\/#Procedural_Reporting_Compliance_Update_for_SellersBuyers\" title=\"Procedural Reporting &amp; Compliance Update for Sellers\/Buyers:\">Procedural Reporting &amp; Compliance Update for Sellers\/Buyers:<\/a><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<h2><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-full wp-image-29206\" src=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2025\/04\/1-TCS.--scaled.jpg\" alt=\"1% TCS on Luxury Goods Above INR 10 Lakh\" width=\"2560\" height=\"1433\" srcset=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2025\/04\/1-TCS.--scaled.jpg 2560w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2025\/04\/1-TCS.--300x168.jpg 300w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2025\/04\/1-TCS.--1024x573.jpg 1024w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2025\/04\/1-TCS.--768x430.jpg 768w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2025\/04\/1-TCS.--1536x860.jpg 1536w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2025\/04\/1-TCS.--2048x1147.jpg 2048w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2025\/04\/1-TCS.--800x448.jpg 800w\" sizes=\"(max-width: 2560px) 100vw, 2560px\" \/><\/h2>\n<h2><span class=\"ez-toc-section\" id=\"CBDT_Announces_1_TCS_on_Luxury_Goods_Above_INR_10_Lakh\"><\/span><span style=\"color: #000080;\"><strong>CBDT Announces 1% TCS on Luxury Goods Above INR 10 Lakh<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>CBDT has notified that a 1% Tax Collected at Source (TCS) will now apply on sale of few prescribed Luxury goods valued above INR 10,00,000\/-, with effect from April 22, 2025. This move expands the scope of Section 206C(1F) of the Income-tax Act, 1961, which previously covered only high-value motor vehicles. Key Changes U\/s 206C(1F) &#8211; Finance (No. 2) Act, 2024.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Amendment_to_Section_206C1F_of_the_Income_Tax_Act_1961_via_Finance_No_2_Act_2024_Corresponding_CBDT_Notification_No_362025\"><\/span><span style=\"color: #000080;\">Amendment to Section 206C(1F) of the Income Tax Act, 1961 via Finance (No. 2) Act, 2024, &amp; Corresponding CBDT Notification No. 36\/2025:<\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul>\n<li>Earlier income tax provision: Tax Collected at Source was applicable only on motor vehicles of value exceeding INR 10,00,000\/-.<\/li>\n<li>Amendment in income tax provision: Tax Collected at Source will now also apply to other notified luxury goods exceeding INR 10,00,000\/- in value, if priced above \u20b910 lakh, will also attract TCS. TCS will be levied even on a single item of the above goods, if its value exceeds \u20b910 lakh.<\/li>\n<li>List of Notified Luxury Goods: Luxury Goods of Value Exceeding INR 10 Lakh on Which Tax Collected at Source will Be Levied: As per CBDT Notification No. 36\/2025 dated 22.04.2025, Section 206C(1F) is amended Effective from April 22, 2025<\/li>\n<li>Tax collected at the source at 1% of the sale value will be levied by the seller at the time of sale on the following goods if they exceed the INR 10,00,000\/- threshold:<\/li>\n<\/ul>\n<table style=\"height: 736px;\" width=\"829\">\n<thead>\n<tr>\n<td>S. No<\/td>\n<td>Nature of Goods<\/td>\n<\/tr>\n<\/thead>\n<tbody>\n<tr>\n<td>1<\/td>\n<td>Any wrist watch<\/td>\n<\/tr>\n<tr>\n<td>2<\/td>\n<td>Any art piece (antiques, painting, sculpture)<\/td>\n<\/tr>\n<tr>\n<td>3<\/td>\n<td>Any collectibles (coin, stamp)<\/td>\n<\/tr>\n<tr>\n<td>4<\/td>\n<td>Any yacht, rowing boats, canoes, helicopters<\/td>\n<\/tr>\n<tr>\n<td>5<\/td>\n<td>Any pair of sunglasses<\/td>\n<\/tr>\n<tr>\n<td>6<\/td>\n<td>Any bag (handbag, purse)<\/td>\n<\/tr>\n<tr>\n<td>7<\/td>\n<td>Any pair of shoes<\/td>\n<\/tr>\n<tr>\n<td>8<\/td>\n<td>Any sportswear\/equipment (golf kit, ski-wear)<\/td>\n<\/tr>\n<tr>\n<td>9<\/td>\n<td>Any home theatre system<\/td>\n<\/tr>\n<tr>\n<td>10<\/td>\n<td>Any horse used for horse racing or polo<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<h3><span class=\"ez-toc-section\" id=\"Threshold_for_Applicability\"><\/span><span style=\"color: #000080;\">Threshold for Applicability : <\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul>\n<li>Tax Collected at Source applies to each individual item of the specified luxury goods category if its value exceeds INR 10,00,000\/-<\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"Tax_Collected_at_Source_Rate_on_Luxury_Goods\"><\/span><span style=\"color: #000080;\">Tax Collected at Source Rate on Luxury Goods : <\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul>\n<li>Rate: 1% of the total sale value.<\/li>\n<\/ul>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"alignnone wp-image-29209\" src=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2025\/04\/photo_2025-04-25_23-21-50.jpg\" alt=\"Luxury Items Over Rs 10 Lakh to Attract TCS\" width=\"984\" height=\"866\" srcset=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2025\/04\/photo_2025-04-25_23-21-50.jpg 468w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2025\/04\/photo_2025-04-25_23-21-50-300x264.jpg 300w\" sizes=\"(max-width: 984px) 100vw, 984px\" \/><\/p>\n<h3><span class=\"ez-toc-section\" id=\"Procedural_Reporting_Compliance_Update_for_SellersBuyers\"><\/span><span style=\"color: #000080;\">Procedural Reporting &amp; Compliance Update for Sellers\/Buyers:<\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul>\n<li>Buyers: Ensure PAN is provided to the seller and check TCS credits in Form 26AS. If the buyer\u2019s tax liability is less than the Tax Collected at Source amount, the excess can be claimed as a refund. This Tax Collected at Source will be reflected in the buyer\u2019s Form 26AS and can be claimed as tax credit when filing the Income Tax Return (ITR).<\/li>\n<li>Sellers: Collect, deposit, and report Tax Collected at Source accurately using updated Form 27EQ. Sellers must deposit the collected tax collected at source against the buyer\u2019s PAN. Deposit TCS against the buyer\u2019s PAN and report in Form 27EQ. Issue TCS certificate to the buyer to support ITR claims.<\/li>\n<\/ul>\n<ul>\n<li>Form 27EQ (Quarterly Tax Collected at Source return) has been updated to include specific reporting codes for luxury goods u\/s 206C(1F).<\/li>\n<\/ul>\n<p>Rajput Jain and Associates provide end-to-end support whether you are buyers looking to claim TCS credit or a seller navigating the updated compliance and filing Form 27EQ. Get in touch for our expert assistance<\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-full wp-image-31224\" src=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2025\/04\/tds.jpg\" alt=\"tCS\" width=\"1026\" height=\"1021\" srcset=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2025\/04\/tds.jpg 1026w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2025\/04\/tds-300x300.jpg 300w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2025\/04\/tds-1024x1019.jpg 1024w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2025\/04\/tds-150x150.jpg 150w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2025\/04\/tds-768x764.jpg 768w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2025\/04\/tds-800x796.jpg 800w\" sizes=\"(max-width: 1026px) 100vw, 1026px\" \/><\/p>\n","protected":false},"excerpt":{"rendered":"<p>CBDT Announces 1% TCS on Luxury Goods Above INR 10 Lakh CBDT has notified that a 1% Tax Collected at Source (TCS) will now apply on sale of few prescribed Luxury goods valued above INR 10,00,000\/-, with effect from April 22, 2025. This move expands the scope of Section 206C(1F) of the Income-tax Act, 1961, &hellip;<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[15],"tags":[10295],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/posts\/29204"}],"collection":[{"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/comments?post=29204"}],"version-history":[{"count":4,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/posts\/29204\/revisions"}],"predecessor-version":[{"id":31225,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/posts\/29204\/revisions\/31225"}],"wp:attachment":[{"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/media?parent=29204"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/categories?post=29204"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/tags?post=29204"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}