India, April 23 -- Luxury items priced over Rs.10 lakh will incur a 1% Tax Collected at Source (TCS) from April 22, which will be collected by the seller on behalf of the government.

Aiming to widen the tax net and detect tax evaders, the government has expanded the provision of TCS from motor vehicles (above Rs.10 lakh) to other luxurious items like antiques, paintings, sculptures, collectibles (coin and stamp), yachts, rowing boats, canoes, helicopters, sunglasses, handbags, purses, shoes, sportswear, golf kit, ski-wear, home theatre systems, horses for racing in race clubs and for polo, according to a notification issued by the finance ministry.

TCS was introduced in the late 1980s as an anti-evasion measure to track income from busi...