1% Tax to be levied on Purchase of Luxury Items over 10 Lakh – Here are the enlisted items
If you are planning on buying luxury items and goods over 10 Lakh, here’s what the recent tax inclusion from Income Tax Department reports about your purchase breakdown. On 22 April, the Income Tax Department announced the list of luxury items and goods that will attract an additional 1% of Tax Collected at Source (TCS).
This tax applies for any luxury item purchase over 10 Lakh with the tax pay of 10,000 for every purchase over the amount. Purchase of luxury products over 40 Lakh will have the seller charge 40,000 in tax.
The list of items include watches, paintings, statues, antiques, coins, stamps, pots, helicopters, luxury handbags, sunglasses, shoes, expensive sportswear, home theatre systems, and racing/polo horses. The tax on the list of goods will be issued effective immediately from 22 April 2025, as reported by DNA India.
Just like TDS, one key benefit of Tax Collected at Source is that you may claim a refund for the amount when filing your Income Tax Return. If the amount of TCS is more than your tax liability, then a refund can be obtained.
