Luxury Watch? Rare Antique? ₹10 Lakh+ Splurges Now Face 1% TCS—Here’s What’s Changing

From April 22, 2025, luxury goods exceeding ₹10 lakh—watches, handbags, antiques, paintings, yachts, and even racehorses—will attract a 1% Tax Collected at Source (TCS) while being bought. The vendors will collect this tax and set it off against the buyer's PAN, and it will become harder to track high-value transactions and curb unaccounted cash deals. The move, guided by the Central Board of Direct Taxes, is aimed at increasing the tax net and increasing financial transparency, more than yielding an immediate revenue. The TCS is entirely whole transaction value and can be offset while returning income tax. Buyers can expect stringent KYC verification and documentation while buying. This new rule puts India's luxury sector under closer tax scrutiny as high-end spending continues to increase.

 

Sources: Economic Times, Times of India, India Today