{"id":6031,"date":"2025-04-26T12:21:31","date_gmt":"2025-04-26T06:51:31","guid":{"rendered":"https:\/\/www.akgvg.com\/blog\/?p=6031"},"modified":"2025-04-26T13:13:03","modified_gmt":"2025-04-26T07:43:03","slug":"luxury-under-income-tax-lens-new-tcs-rules-notified","status":"publish","type":"post","link":"https:\/\/www.akgvg.com\/blog\/luxury-under-income-tax-lens-new-tcs-rules-notified\/","title":{"rendered":"Luxury under Income Tax Lens: New TCS Rules Notified"},"content":{"rendered":"<h2><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-full wp-image-6041\" src=\"https:\/\/www.akgvg.com\/blog\/wp-content\/uploads\/2025\/04\/Luxury-under-Income-Tax-Lens-New-TCS-Rules-Notified.jpeg\" alt=\"Income Tax\" width=\"1024\" height=\"512\" srcset=\"https:\/\/www.akgvg.com\/blog\/wp-content\/uploads\/2025\/04\/Luxury-under-Income-Tax-Lens-New-TCS-Rules-Notified.jpeg 1024w, https:\/\/www.akgvg.com\/blog\/wp-content\/uploads\/2025\/04\/Luxury-under-Income-Tax-Lens-New-TCS-Rules-Notified-300x150.jpeg 300w, https:\/\/www.akgvg.com\/blog\/wp-content\/uploads\/2025\/04\/Luxury-under-Income-Tax-Lens-New-TCS-Rules-Notified-768x384.jpeg 768w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><\/h2>\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_81 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/www.akgvg.com\/blog\/luxury-under-income-tax-lens-new-tcs-rules-notified\/#Introduction\" >Introduction<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/www.akgvg.com\/blog\/luxury-under-income-tax-lens-new-tcs-rules-notified\/#Amendment_in_section_206C_1F_wef_22nd_April_2025\" >Amendment in section 206C (1F)\u00a0w.e.f. 22nd\u00a0April 2025<\/a><\/li><\/ul><\/nav><\/div>\n<h2 style=\"text-align: justify;\"><span class=\"ez-toc-section\" id=\"Introduction\"><\/span><span style=\"font-family: Cambria; font-size: 22px;\"><strong><u>Introduction<\/u><\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p style=\"text-align: justify;\"><span style=\"font-family: Cambria;\">As per section 206C of the Income Tax Act 1961 (\u201cthe Act\u201d), Tax Collected at Source (\u201cTCS\u201d) is a tax that sellers collect from buyers at the time of sale of specified goods. The applicable TCS compliances are:<\/span><\/p>\n<ul style=\"text-align: justify;\">\n<li><span style=\"font-family: Cambria;\"><strong>Collection &amp; Payment:<\/strong>\u00a0TCS needs to be collected by seller from the buyer at the time of receipt of consideration and the seller needs to be deposit the same with government by 7<sup>th<\/sup>\u00a0of the next month.<\/span><\/li>\n<li><span style=\"font-family: Cambria;\"><strong>TCS Return Filing:<\/strong>\u00a0The quarterly TCS return must be filed by the sellers vide Form 27EQ, by 15<sup>th<\/sup>\u00a0of the next month from the end of the respective quarter, in which such goods are sold.\u00a0<\/span><\/li>\n<\/ul>\n<h2 style=\"text-align: justify;\"><span class=\"ez-toc-section\" id=\"Amendment_in_section_206C_1F_wef_22nd_April_2025\"><\/span><span style=\"font-family: Cambria; font-size: 22px;\"><strong><u>Amendment in section 206C (1F)<\/u><\/strong><\/span><span style=\"font-family: Cambria;\"><i><strong><u>\u00a0<\/u><\/strong><\/i><strong><u>w.e.f. 22<\/u><sup><u>nd<\/u><\/sup><u>\u00a0April 2025<\/u><\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p style=\"text-align: justify;\"><span style=\"font-family: Cambria;\">As per\u00a0<a href=\"https:\/\/incometaxindia.gov.in\/communications\/notification\/notification-36-english.pdf\" target=\"_blank\" rel=\"noopener\"><strong><u>Notification no. 36\/2025 dated 22<\/u><sup><u>nd<\/u><\/sup><u>\u00a0April 2025<\/u><\/strong><\/a>,\u00a0<\/span><span style=\"font-family: Cambria;\">luxury purchases have now been brought under the ambit of TCS, resultantly people desirous of luxury items would end-up paying additional 1% TCS while making payment towards the purchases.<\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"font-family: Cambria;\">As per existing provisions laid u\/s 206C(1F) of the Act, the TCS is required to be collected by the sellers from the buyers, on the sale of motor vehicles only. However, vide afore-mentioned notification, the CBDT has introduced the following items:<\/span><\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-full wp-image-6037\" src=\"https:\/\/www.akgvg.com\/blog\/wp-content\/uploads\/2025\/04\/TCS-206C.png\" alt=\"TCS - 206C\" width=\"1525\" height=\"744\" srcset=\"https:\/\/www.akgvg.com\/blog\/wp-content\/uploads\/2025\/04\/TCS-206C.png 1525w, https:\/\/www.akgvg.com\/blog\/wp-content\/uploads\/2025\/04\/TCS-206C-300x146.png 300w, https:\/\/www.akgvg.com\/blog\/wp-content\/uploads\/2025\/04\/TCS-206C-1024x500.png 1024w, https:\/\/www.akgvg.com\/blog\/wp-content\/uploads\/2025\/04\/TCS-206C-768x375.png 768w\" sizes=\"auto, (max-width: 1525px) 100vw, 1525px\" \/><\/p>\n<p style=\"text-align: justify;\"><span style=\"font-family: Cambria;\">Any person, being a seller, who receives sale consideration exceeding \u20b910 lakh, from the sale of motor car or above specified goods, is required to collect Tax Collected at Source (TCS) @ 1%, at the time of receipt of consideration for such purchase.<\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"font-family: Cambria;\">Further, as per\u00a0<\/span><a href=\"https:\/\/incometaxindia.gov.in\/communications\/notification\/notification-35-english.pdf\" target=\"_blank\" rel=\"noopener noreferrer\"><span style=\"font-family: Cambria;\"><strong><u>Notification no. 35\/2025 dated 22<\/u><sup><u>nd<\/u><\/sup><u>\u00a0April 2025<\/u><\/strong><\/span><\/a><span style=\"font-family: Cambria;\">\u00a0a significant amendment has been made in Form 27EQ. Accordingly, other specified high-value goods such as luxury watches, art pieces, collectibles, yachts, and similar items have also been brought under the same category for TCS reporting purposes.<\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"font-family: Cambria;\">Given the above, one need to be cautious of the following:<\/span><\/p>\n<ul style=\"text-align: justify;\">\n<li><span style=\"font-family: Cambria;\">Effective 22<sup>nd<\/sup>\u00a0April 2025, an additional 1% TCS will be payable at the time of purchase of specified luxury items.<\/span><\/li>\n<li><span style=\"font-family: Cambria;\">Taxpayers are advised to ensure that credit for the TCS paid, at the time of purchase, is duly claimed while filing their annual Income Tax Return.<\/span><\/li>\n<\/ul>\n<p style=\"text-align: justify;\"><span style=\"font-family: Cambria;\"><strong>This content is meant for information only and should not be considered as an advice or legal opinion, or otherwise.\u00a0<\/strong><\/span><a title=\"AKGVG &amp; Associates\" href=\"https:\/\/www.akgvg.com\/\" target=\"_blank\" rel=\"noopener noreferrer\"><span style=\"font-family: Cambria;\"><strong><u>AKGVG &amp; Associates<\/u><\/strong><\/span><\/a><span style=\"font-family: Cambria;\"><strong>\u00a0does not intend to advertise its services through this.<\/strong><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Introduction As per section 206C of the Income Tax Act 1961 (\u201cthe Act\u201d), Tax Collected at Source (\u201cTCS\u201d) is a tax that sellers collect from buyers at the time of sale of specified goods. The applicable TCS compliances are: Collection &amp; Payment:\u00a0TCS needs to be collected by seller from the buyer at the time of&#8230;<\/p>\n","protected":false},"author":1,"featured_media":6041,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[397],"tags":[1560,1354,405,1734,1557,1558,1559,1556,155,1353,1562,1735,1736,1737,1732,157,1733,1731,1561],"class_list":["post-6031","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-taxation-regulory-services","tag-best-income-tax-assessments","tag-best-income-tax-consultants","tag-best-tax-consultant-in-delhi","tag-best-tax-consultants","tag-income-tax-assessments-company","tag-income-tax-assessments-company-delhi","tag-income-tax-assessments-company-india","tag-income-tax-assessments-consultant","tag-income-tax-consultant","tag-income-tax-consultant-in-delhi","tag-income-tax-consultants","tag-tax-assessments-company","tag-tax-assessments-company-delhi","tag-tax-assessments-company-india","tag-tax-consultant-in-bangalore","tag-tax-consultant-in-delhi","tag-tax-consultant-in-india","tag-tax-consultant-in-mumbai","tag-top-income-tax-assessments"],"_links":{"self":[{"href":"https:\/\/www.akgvg.com\/blog\/wp-json\/wp\/v2\/posts\/6031","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.akgvg.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.akgvg.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.akgvg.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.akgvg.com\/blog\/wp-json\/wp\/v2\/comments?post=6031"}],"version-history":[{"count":9,"href":"https:\/\/www.akgvg.com\/blog\/wp-json\/wp\/v2\/posts\/6031\/revisions"}],"predecessor-version":[{"id":6042,"href":"https:\/\/www.akgvg.com\/blog\/wp-json\/wp\/v2\/posts\/6031\/revisions\/6042"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.akgvg.com\/blog\/wp-json\/wp\/v2\/media\/6041"}],"wp:attachment":[{"href":"https:\/\/www.akgvg.com\/blog\/wp-json\/wp\/v2\/media?parent=6031"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.akgvg.com\/blog\/wp-json\/wp\/v2\/categories?post=6031"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.akgvg.com\/blog\/wp-json\/wp\/v2\/tags?post=6031"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}