Let us tell you that earlier TCS was applicable only on vehicles worth more than Rs 10 lakh, which was implemented on 1 January 2025 but now it has been implemented on things worth more than Rs 10 lakh. This rule was brought by the Finance Minister in the budget of July 2024.
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Income Tax: Now it has become even more expensive for people to buy luxury items. Under the new rule of the government, now 1 percent TCS i.e. Tax Collection on Source will have to be paid on purchasing items worth more than Rs 10 lakh. The Income Tax Department has implemented this new rule, which has also come into effect from 22 April 2025. In such a situation, if you buy any luxury item like bag, watch, shoes, clothes, which costs more than Rs 10 lakh, then you will now have to pay 1 percent TCS on that thing.
What is TCS?
TCS is the tax that a seller charges you when you buy any goods. When you file your ITR i.e. Income Tax Return, you include this tax in your tax liability. The benefit of this is that the imposition of this tax helps the government to know the information about your major expenses because PAN card information has to be given while buying. However, the government does not earn much from this tax.
Let us tell you that earlier TCS was applicable only on vehicles worth more than Rs 10 lakh, which was implemented on January 1, 2025, but now it has been implemented on things above Rs 10 lakh as well. This rule was brought by the Finance Minister in the budget of July 2024.
1 percent TCS on these items worth more than 10 lakhs
Items worth more than 10 lakhs are included in luxury items. These items include many things like watches, handbags, shoes, clothes, paintings, glasses, old coins, home theater systems, sportswear, helicopters, boats, tickets, statues and polo horses.
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