Luxury goods priced over Rs 10 lakh, such as handbags, watches, art, and yachts, will now be subject to a 1% Tax Collected at Source (TCS) starting from April 22. This new provision, outlined in the Finance Act 2024, is designed to bolster the income tax department’s monitoring of expensive transactions by necessitating the submission of PAN details. The move is expected to increase transparency and curb tax evasion in high-end purchases across India.