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 provision, outlined in the Finance Act 2024, is designed to boost the income tax department’s oversight of high-end transactions by requiring the submission of PAN details. This move is expected to tighten the monitoring of extravagant purchases in India.