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Why many high-end luxury items are set to become costlier

23 April 2025
in India
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Why many high-end luxury items are set to become costlier
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Luxury Goods Attract 1% TCS

Handbags, wrist watches, footwear, and sportswear priced above Rs 10 lakh will now incur a 1% tax collected at source (TCS), as detailed in an April 22, 2025 notification by the income tax department. This measure, introduced through the Finance Act 2024, aims to enhance transparency in high-value purchases, requiring PAN details at the time of sale, while the TCS paid can be credited against the buyer’s final tax liability. Tax experts view this as a step towards better monitoring of discretionary spending and formalizing regulatory oversight in the luxury goods sector.

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Tags: 1% TCS on luxury goodscostlierdiscretionary spendingGoods costing above Rs 10 lakhhandbagsHighEndincome tax department notificationsItemsLuxuryluxury items taxsettax net expansionwatches
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