Buying A ₹15 Lakh Bag? You Now Owe Taxman ₹15,000 Too. New Tcs Rules Explained

From January 1, 2025, your high-end indulgences will travel pinch a taxation twist. Whether you're buying a ₹12 lakh wristwatch, a collector’s sculpture, aliases moreover a polo horse, nan authorities wants to know—and collect.

The database of equipment sounds for illustration a billionaire’s wishlist: luxury watches, creation pieces, collectibles, yachts, boats, helicopters, designer sunglasses, handbags, shoes, high-end sports gear, location theatre systems—and moreover horses utilized for racing aliases polo.

Buy a designer handbag worthy ₹15 lakh, and you’ll salary ₹15,15,000—₹15,000 of which will beryllium TCS. The seller deposits this magnitude to nan authorities and provides you pinch a Form 27D TCS certificate. The bully news? You tin declare this magnitude backmost while filing your income taxation return—just for illustration TDS.

The move is reportedly astir widening nan taxation nett and keeping way of large spenders. It targets high-value discretionary purchases. 

Earlier, TCS applied only to nan acquisition of centrifugal vehicles complete ₹10 lakh.

Sellers must cod and deposit TCS by nan 7th of nan pursuing month, rumor nan purchaser a TCS certificate, and record quarterly returns successful Form 27EQ.

Bottom line: If you’re readying to splurge post-New Year, adhd 1% to your luxury budget. That connection watch aliases limited-edition creation portion now comes pinch a small thing extra—an invisible way to nan taxation department.

Published on: Apr 23, 2025 11:14 AM IST