Luxury goods priced above 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-value transactions by necessitating the submission of PAN details. The move is expected to curb tax evasion and improve transparency in high-end purchases.