India: Expansion of tax collection at source on specified goods

Ten new categories of goods subject to tax withheld at source

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April 24, 2025

The Central Board of Direct Taxes (CBDT) on April 22, 2025, issued a notification expanding the scope of tax collection (withholding) at source (TCS) under Section 206C of the Income-tax Act, 1961. This expansion includes 10 new categories of goods subject to TCS, with a threshold of INR 10 lakhs for the levy:

  • Wristwatches
  • Art pieces such as antiques, paintings, sculptures
  • Collectibles such as coins and stamps
  • Yachts, rowing boats, canoes, helicopters
  • Pair of sunglasses
  • Bags such as handbags and purses
  • Pair of shoes
  • Sportswear and equipment such as golf kits or skiwear
  • Home theatre systems
  • Horses for horse racing in race clubs or for polo

An amendment to the quarterly TCS return (Form no. 27EQ) was also notified to include the tax collected on these goods, effective from April 22, 2025.

Read an April 2025 report prepared by the KPMG member firm in India

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