"New 1% Tax on Luxury Goods Over Rs 10 Lakh to Aid Income Tax Tracking"

Luxury goods 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 from April 22.

Luxury goods 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 from April 22. The implementation of this tax, as outlined in the Finance Act 2024, is designed to bolster the income tax department's monitoring of high-end transactions by requiring PAN details.