The government is broadening its tax base by implementing a 1% TCS on luxury items exceeding Rs 10 lakh, effective immediately. This initiative targets underreported income and aims to track high-value transactions in categories like watches, handbags, and art. The move enhances scrutiny of both buyers and sellers, addressing concerns about tax evasion and smuggled goods. The govt is broadening its tax base by implementing a 1% TCS on luxury items exceeding Rs 10 lakh, effective immediately. This initiative targets underreported income and aims to track high-value transactions in categories like watches, handbags, and art. The move enhances scrutiny of both buyers and sellers, addressing concerns about tax evasion and smuggled goods. The Central Board of Direct Taxes (CBDT) has announced ten categories of products that will be affected by these new TCS regulations. Among these categories are racing horses, yachts, helicopters, gold kits, and ski equipment.With this new regulation in place, buyers of these luxury goods will be required to pay a TCS of 1% at the time of purchase. This is similar to the existing policy for vehicles that exceed Rs 10 lakh in price. The government's strategy aims to increase the number of taxpayers in the nation and encourage more accurate income reporting. (ICE NEW DELHI)

Fonte notizia: Economic Times