Bad news for millions of Indians as watches, shoes, bags, sunglasses and other items to get costlier due to…

Bad news for taxpayers: In a significant announcement made on Wednesday, the Central Board of Direct Taxes announced that several luxury goods costing above Rs 10 lakh will now attract Tax Collected at Source (TCS) at 1 per cent. The notification shall take effect immediately. TCS, or Tax Collected at Source, is a tax payable by the seller but collected from the buyer. Here are all the details you need to know.

List of items that will attract 1% TCS

As per an official notification, wrist watch, art piece (antiques, painting, sculpture), collectibles (coin, stamp), yacht, rowing boat, canoe, helicopter, sunglasses, handbag, purse, shoes, sportswear and equipment such as golf kit and ski wear, home theatre system, any horse for horse racing in race clubs and polo will attract such special tax.

Wrist watches, paintings, sunglasses, shoes, golf kits, home theatre systems worth more than Rs 10 lakh to attract tax collection at source: Central Board of Direct Taxes (CBDT) pic.twitter.com/QIPVHN4zVr

— ANI (@ANI) April 23, 2025

“This move is a strategic step towards enhancing tax transparency and tracking high-value consumption trends, a move that aligns with global trends in tax surveillance and tax transparency,” Munjal Almoula, Head of Tax at consultancy firm BDO India.

(With inputs from agencies)

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