Income Tax releases FAQs on TCS on Luxury Goods: Know the change:

The Government on Tuesday has notified list of goods of the value exceeding ten lakh rupees for collection of tax at source (TCS). Accordingly, TCS Return Form No. 27EQ was also amended to incorporate that change. Now, CBDT has also issued FAQs to clarify the confusions if any in this introduced change. Q.1 What changes were brought in section 206C(1F) of the Income Tax Act, 1961 through Finance (No. 2) Act, 2024? Ans. Earlier, Section 206C(1F) provided for collection of tax at source (TCS) on sale of motor vehicle of value exceeding ten lakh rupees. Vide Finance (No. 2) Act, 2024, section 206C(1F) was amended to provide that TCS will also be levied on any other goods of value exceeding ten lakh rupees, as may be notified by the Central Government in the Official gazette. Q.2 Which are the luxury goods of value exceeding ten lakh rupees on which TCS will be levied? Ans. Vide CBDT Notification No. 36/2025 dated 22.4.2025 SO 1825(E), the following goods of the value exceeding ten lakh rupees have been notified for collection of tax at source as specified in sub-section (1F) of section 206C of the Act. Q.3 Whether TCS will be levied on sale of a single item of the notified goods of value exceeding ten lakh rupees? Ans. Yes, TCS will be levied on sale of a single item of the goods of the nature specified in the above table which is of the value exceeding ten lakh rupees.

Particulars	Amount	TCS Applicability
Rado Watch	500000	No TCS
Gucci Bag	600000	No TCS
Total Value purchased	1100000
Particulars	Amount	TCS Applicability
Rado Watch	1100000	TCS Applicable
Gucci Bag	600000	No TCS
Total Value purchased	1700000
Particulars	Amount	TCS Applicability
Rado Watch	1100000	TCS Applicable
Gucci Bag	1200000	TCS Applicable
Total Value purchased	2300000

Q.4 When will the new provisions become effective? Ans. The new provisions will become effective from the date of publication of notification i.e. 22.04.2025 How can you claim TCS if your TCS has been collected?

• You need to have a valid PAN.
• The TCS collected will be reflected in your 26AS.
• TCS Collector is also liable to issue the TCS Certificate
• At the time of filing ITR, you can claim the TCS Credit.