CBDT notifies ten luxury goods for income tax collection at source at the rate of 1%

This Tax Alert explains Notification No. 36/2025 dated 22 April 2025 S.O. 1825(E) (Notification) issued by the Central Board of Direct Taxes (CBDT)^[1] , which notifies ten specific luxury goods for tax collection at source (TCS) by the seller from the buyer at a rate of 1% if the value of sale consideration exceeds INR 1m. The notified goods include wristwatch, art piece (such as antiques, painting, sculpture), collectibles (such as coin, stamp), yacht, rowing boat, canoe, helicopter, sunglasses, bag (such as handbag, purse), shoes, sportswear and equipment (such as golf kit, skiwear), home theatre system, and racehorse and polo horse. The CBDT has also released four FAQs on the expanded coverage of TCS.

This notification has come into force on 22 April 2025, being the date of notification in Official Gazette.

^{[1] Apex direct tax administrative body in India}