The CBDT vide Notification No. 36/2025- Income Tax dated 22nd April 2025, has exercised powers under clause (ii) of sub-section (1F) of section 206C of the Income-tax Act, 1961, to notify certain specified goods on which Tax Collection at Source (TCS) shall be applicable.
Highlights :
Threshold: TCS shall apply where the value of goods exceeds Rs. 10 lakhs per transaction.
Rate of TCS is 1%.
Applicable Form is 27EQ
The obligation to collect TCS is on the seller of the specified goods.
List of Newly Notified Goods:
- Wrist watches
- Art pieces (e.g., antiques, paintings, sculptures)
- Collectibles (e.g., coins, stamps)
- Yachts, rowing boats, canoes, helicopters
- Sunglasses
- Bags (e.g., handbags, purses)
- Shoes (note: only “shoes” mentioned, not all footwear)
- Sportswear and equipment (e.g., golf kits, ski-wear)
- Home theatre systems
- Horses for horse racing and polo
Author’s views:
1) Surprisingly, gold, silver, & jewellery items are not included in this list, despite their high value & susceptibility to tax evasion.
2) The specific inclusion of “shoes” (rather than all forms of footwear) may cause interpretational challenges & potential classification disputes. It could simply be a drafting anomaly. Excluding designer sandals or expensive sneakers just because they’re not “shoes” could create loopholes & disputes.
3) It’s baffling as to why any only home theatre is covered instead of any electronic items. Similarly why designer clothes are left out is a million rupee question.
4) One has to wonder why costly pens are out of the purview.
5) The focus appears to be on high-value lifestyle and luxury items, many of which were previously outside the TCS purview.
Dealers and sellers of the above goods must update their billing & compliance systems to ensure TCS is collected & deposited appropriately. Buyers should be informed about the additional TCS component & its potential credit in their tax filings.
Clarification may be sought from the authorities regarding ambiguous classifications & borderline cases.
Also Read: CBDT amends form No. 27EQ and added 10 new items for TCS Reporting
MINISTRY OF FINANCE
(Department Of Revenue)
(CENTRAL BOARD OF DIRECT TAXES)
Notification No. 36/2025- Income Tax| Dated: 22nd April, 2025
S.O. 1825(E).—In exercise of the powers conferred by clause (ii) of sub-section (1F) of section 206C of the Income-tax Act, 1961 (43 of 1961), the Central Government hereby notifies the following goods of the value exceeding ten lakh rupees for collection of tax at source as specified therein –
| Sl. No. | Nature of goods |
| (1) | (2) |
| 1. | any wrist watch |
| 2. | any art piece such as antiques, painting, sculpture |
| 3. | any collectibles such as coin, stamp |
| 4. | any yacht, rowing boat, canoe, helicopter |
| 5. | any pair of sunglasses |
| 6. | any bag such as handbag, purse |
| 7. | any pair of shoes |
| 8. | any sportswear and equipment such as golf kit, ski-wear |
| 9. | any home theatre system |
| 10. | any horse for horse racing in race clubs and horse for polo |
2. This notification shall come into force on the date of its publication in the Official Gazette.
[No. 36/2025/F. No. 370142/11/2025-TPL]
ASHISH KUMAR AGRAWAL, Dy. Secy .
Author Bio
Author’s views are correct.