New Delhi, April 24 -- The Income Tax Department has officially notified a 1% Tax Collected at Source (TCS) on the sale of luxury items priced over Rs.10 lakh, effective immediately. This move, originally announced in the July 2024 Budget, aims to enhance tax surveillance and plug potential evasion.

Under the new rules, high-value goods like wrist watches, handbags, antiques, paintings, sculptures, sunglasses, home theatre systems, yachts, helicopters, luxury shoes, sportswear, and even race or polo horses will attract the 1% TCS at the time of purchase.

The TCS is to be collected by the seller and matched with the buyer's tax profile to track big-ticket discretionary spending. The list also includes collectibles like coins, stamps, gol...