New Delhi: If you are going to buy a luxury bag, expensive watch, branded shoes or golf kits, which costs more than 10 lakhs, then you will now have to pay 1 percent tax, which is called Tax Colored At Source (TCS). This rule has come into force from 22 April 2025. The Income Tax Department has released a new list, in which 1 percent TCS will be imposed on the purchase of luxury goods, if they cost more than 10 lakhs.
TCS is applicable to some items.
If the value of these items is more than Rs 10 lakh, then TCS will be applicable. Watches (wrist clock), artifacts (antiques, paintings, sculptures), collectable objects (coins, tickets), boats, helicopters, sailing boats, dongs, sunglasses, handbags, purse, shoes, sports materials (golf kits, ski-wiere), home theater system, racing or polo.
How does it work then
When you buy any item worth more than Rs 10 lakh? So the seller will cut 1% TCS and deposit tax on your PAN number. This amount will appear in your form 26AS. You can claim it as a tax credit while filing ITR. If you have no tax liability, then this amount will be returned to you.
If the PAN number is not given, the TCS rate will be 20%. This means that you have to pay a TCS of ₹ 2 lakh on the purchase of ₹ 10 lakh! Through this, the government wants to stop unknown transactions.
What is the intention of the government?
The purpose of this scheme is not to increase revenue. But this is the purpose. Its purpose is to increase clarity, detect income, and prevent low reporting and tax evasion. If you are fond of luxury items, you should not forget to give your PAN number while buying them – so that you can avoid tax related problems later.
The Post Tax New Rules: Rules will be applicable from April 22, if PAN is not there, 2% will have to be replaced by 20% tax first appeared on News India Live | Breaking India News, The Indian Headline, India Express News, Fast India News.
