Luxury goods in India valued at over Rs 10 lakh, such as handbags, watches, art, and yachts, will now be subject to a 1% Tax Collected at Source (TCS) starting April 22. This new provision, outlined in the Finance Act 2024, is designed to bolster the income tax department’s monitoring of high-end transactions by necessitating PAN details. The move is expected to increase transparency and compliance in the luxury goods market, ensuring that purchases above the specified threshold are duly recorded and taxed. The implementation of TCS on luxury items is set to have a significant impact on high-net-worth individuals and luxury retailers across the country. It is crucial for stakeholders in the luxury sector to familiarize themselves with the updated regulations to avoid penalties and stay in line with the law. The government’s decision to levy TCS on expensive goods reflects a broader effort to streamline tax collection and prevent tax evasion in India’s affluent consumer segment. As the deadline for compliance approaches, it is essential for businesses and consumers involved in high-value transactions to prepare for the new tax implications and maintain accurate records to ensure smooth operations and adherence to the revised tax policies.