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Q.1 What changes were brought in section 206C(1F) of the Income Tax Act, 1961 through Finance (No. 2) Act, 2024? Ans. Earlier, Section 206C(1F) provided for collection of tax at source (TCS) on sale of motor vehicle of value exceeding ten lakh rupees. Vide Finance (No. 2) Act, 2024, section 206C(1
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FAQ :
Section 206C(1F) was amended by the Finance (No. 2) Act, 2024, to extend the collection of tax at source (TCS) to other goods valued over ten lakh rupees, in addition to motor vehicles.
The notified luxury goods include wristwatches, art pieces, collectibles, yachts, sunglasses, shoes, sportswear, home theatre systems, and horses for racing, provided they exceed ten lakh rupees in value.
Yes, TCS will be levied on the sale of a single item from the notified categories if its value exceeds ten lakh rupees.
The new provisions became effective from 22nd April 2025, which is the date the relevant notification was published.
TCS will be levied on the sale of any of the notified luxury goods if their individual value exceeds ten lakh rupees.
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