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

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  • Last Updated on 24 April, 2025

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TCS on Luxury Goods

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.

Click Here To Read The Full Notification

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Author: Taxmann

Taxmann Publications has a dedicated in-house Research & Editorial Team. This team consists of a team of Chartered Accountants, Company Secretaries, and Lawyers. This team works under the guidance and supervision of editor-in-chief Mr Rakesh Bhargava.

The Research and Editorial Team is responsible for developing reliable and accurate content for the readers. The team follows the six-sigma approach to achieve the benchmark of zero error in its publications and research platforms. The team ensures that the following publication guidelines are thoroughly followed while developing the content:

  • The statutory material is obtained only from the authorized and reliable sources
  • All the latest developments in the judicial and legislative fields are covered
  • Prepare the analytical write-ups on current, controversial, and important issues to help the readers to understand the concept and its implications
  • Every content published by Taxmann is complete, accurate and lucid
  • All evidence-based statements are supported with proper reference to Section, Circular No., Notification No. or citations
  • The golden rules of grammar, style and consistency are thoroughly followed
  • Font and size that's easy to read and remain consistent across all imprint and digital publications are applied