The National Democratic Alliance (NDA) government has taken a significant decision concerning the sale of luxury goods. According to a statement issued by the Income Tax Department today (April 23), the government will begin collecting a 1 percent Tax Collected at Source (TCS) on luxury items priced above ₹10 lakh, including wristwatches and handbags. This new policy has come into effect starting April 22.
The department clarified that the TCS provision applies to several high-end products, such as wristwatches, handbags, racing horses, sculptures, paintings, high-end sportswear, home theater systems, sunglasses, and footwear. Sellers dealing in these items are now required to comply with the TCS regulations without exception.
Experts have opined that this decision is likely to enforce greater control over luxury goods sales. According to available information, the central government’s move aims to increase transparency in transactions involving high-value goods.
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