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Shifting from TCS on Start Dates As of 22nd April 2025, purchases of value greater than 10 lakh would bear a 1% Tax Collected at Source. This regulation is aimed at ensuring compliance and reducing leakage in tax collection by the Income Tax Department.
Items of Additional TCS at 1% Rate:
The following listed items would also bear 10 lakh as the upper limit for transaction amount.
Time Piece (wrist watches)
Since they're highly priced luxury items, they also constitute Watches of all kinds.
Art Objects (a mixture of Antique Coins, Paintings, Sculptures )
Headgear (Sunglasses)
Fine Hand Bags and Wallets (
Luxury Sneakers (Branded Sports Shoes)
Leisure Gear (Golf Kits, Ski Wear)
Sound Equipment (Homeotleos)
Horses of Fine Breeds (Carting or Polo)
How TCS Works
TCS is collected at the point of sale where it would be subtracted from the selling price.
Also, for the items listed above, the set base price is removed. Therefore, TCS is applicable for items above 10 lakh.
The tax will be paid using a Permanent Account Number (PAN) and will be available in form 26AS.
As per the given guidelines, tax credit can be availed for TCS as well during the time of filing Income Tax Return (ITR).
In case the termed tax liability does not arise, there will be a refund for the Total Contribution to Tax System.
TCS without the Potato Achade PAN:
Guessing that the PAN is not supplied with the purchase of the product, the Tax Collected will shift to 20%.
On the other hand, taking an assumption that TCS is capped at 10 lakh without the PAN card, TCS would amount to 20 lakh.
The policy attempts to prevent people from carrying out transactions without identification by enforcing this restrictve rule.
Government’s Objective:
As it has already been pointed out, the intent behind this rule is:
Improving fiscal transparency
Strengthening income monitoring
Mitigating income and tax liabilities through concealment
When making lavish expenses, remember to always pamper yourself with a PAN and use it to help reduce the burden of tax calculations during filing.
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