Buying Luxury? 1% TCS to Be Levied on Handbags, Watches & More Worth Over ₹10 Lakh

For those looking to buy a designer handbag, a luxury watch, or another high-end item, you might want to buckle up for an additional cost. The Income Tax department announced a 1% Tax Collected at Source (TCS) on luxury goods worth over ₹10 lakh. Let's dive into what this means for luxury shoppers and other details in this article.

1% TCS Imposed On High-End Goods

The government has announced a 1% Tax Collected at Source (TCS) on luxury goods worth over ₹10 lakh, effective April 22, 2025. This move reportedly aims to expand the taxpayer base and ensure accurate income disclosures.

📢CBDT Notification Alert!

➡️New rules issued for Tax Collection at Source (TCS) on the purchase of certain goods.

✅Notification S.O. 1825(E) dated 22.04.2025 published in https://t.co/wgrnm5QBDw

🔗The Notification can be accessed at:https://t.co/6GAXN2t5RS pic.twitter.com/zoRIH6NkXd

— Income Tax India (@IncomeTaxIndia) April 23, 2025

A-List of Luxury Goods Included In The 1% TCS

The following luxury goods are subject to the 1% TCS:

• Wrist Watches: High-end watches from esteemed brands like Rolex, Omega, and Patek Philippe
• Art Pieces: Antiques, paintings, sculptures, and other art collectibles
• Collectibles: Coins, stamps, and other rare collectibles
• Yachts and Helicopters: Luxury watercraft and aircraft
• Sunglasses: High-end sunglasses from designer brands
• Handbags and Purses: Luxury handbags from brands like Louis Vuitton, Chanel, and Gucci
• Shoes: High-end footwear from designer brands
• Sportswear and Equipment: Golf kits, ski gear, and other high-end sportswear
• Home Theatre Systems: High-end home entertainment systems
• Horses for Racing and Polo: Horses bred for racing and polo games

How Will TCS Work For Luxury Goods?

Don't Miss: Beyonce's Mother Tina Knowles' Breast Cancer Revelation After Missing Mammogram Sparks Discussion: Decoding Hidden Link

Sellers will collect 1% TCS from the buyer upon purchase of luxury goods worth over ₹10 lakhs. This amount will be calculated on the sale price and adjusted against the buyer's total income tax liability when filing returns.

Implications For Luxury Shoppers

Buyers can expect:

• Enhanced Know Your Customer (KYC) Requirements
• Updated PAN Details For TCS Compliance
• TCS Reflected in Form 26AS
• Retention Of Purchase Receipts

Don't Miss: Are Millennials and Gen Z Changing The Definition Of Luxury Living? Lifestyle Services Expert Chimes In

If you liked this story, then please share it. To read more such stories, stay connected to HerZindagi.