India Lists Luxury Goods Subject to 1% Tax Collection at Source

India’s Central Board of Direct Taxes (CBDT) has issued Notifications No. 35/2025 and No. 36/2025, effective April 22, 2025, listing luxury goods subject to a 1% tax collection at source (TCS) for items valued over INR 1 million.
The included luxury goods are diverse and encompass wristwatches, art pieces (antiques, paintings, sculptures), collectibles (coins, stamps), yachts, sunglasses, handbags, shoes, sports equipment, home theatre systems, and horses used for racing and polo.
This new TCS requirement adds to existing regulations for motor vehicles valued over INR 1 million, and the CBDT has provided FAQs to clarify the details of Notification No. 36/2025.