CBDT Notifies 10 Luxury Goods Liable to TCS | List Includes Home Theatre Systems, Shoes, Handbags

Notification No. 36/2025, dated 22-04-2025

Section 206C of the Income-tax Act deals with the collection of tax at source (TCS) on the business of trading in alcoholic liquor, forest produce, scrap, etc. Sub-clause (1F) of section 206C mandates sellers at a rate of 1% on the sale of motor vehicles priced over Rs. 10 lakh.

Finance (No. 2) Act 2024, w.e.f. 1-1-2025, has expanded the scope of section 206C(1F) to levy TCS on any other goods of value exceeding Rs. 10 lakh. Such other goods shall be notified by the Government and will be in the nature of luxury goods.

Now, the Central Board of Direct Taxes (CBDT) has notified the following 10 luxury goods, which shall be subject to 1% TCS under section 206C(1F).

1. Wristwatches
2. Art items such as antiques, paintings, and sculptures
3. Collectibles, including coins and stamps
4. Yachts, rowing boats, canoes, and helicopters
5. Sunglasses
6. Handbags and purses
7. Pair of shoes
8. Sportswear and equipment like golf kits or ski wear
9. Home theatre systems
10. Horses used for racing or polo

The Board has also amended Form No. 27EQ to include the list of notified goods in the Annexure to report the collection of tax while furnishing the TCS return.’

The notification shall come into force from 22-04-2025.

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