The Central Board of Direct Taxes has issued a notification, effective from its publication date, to further amend the Income-tax Rules, 1962. These amendments, known as the Income-tax (Eleventh Amendment) Rules, 2025, introduce new categories for the collection of tax at source under section 206C of the Income-tax Act, 1961. Specifically, Form 27EQ has been updated to include collection at source on the sale of items such as wrist watches, art pieces (antiques, paintings, sculptures), collectibles (coins, stamps), yachts, rowing boats, canoes, helicopters, sunglasses, bags (handbags, purses), shoes, sportswear and equipment (golf kits, ski-wear), home theatre systems, and horses for racing and polo. Also Read: CBDT notifies 10 new items on which TCS needs to be collected
MINISTRY OF FINANCE
(Department of Revenue)
(CENTRAL BOARD OF DIRECT TAXES)
Notification No. 35/2025 – Income Tax | Dated: 22nd April, 2025
G.S.R. 252(E).––In exercise of the powers conferred by section 295 read with section 206C of the Income- tax Act, 1961 (43 of 1961), the Central Board of Direct Taxes hereby makes the following rules further to amend the Income-tax Rules, 1962, namely:-
1. (1) These rules may be called the Income-tax (Eleventh Amendment) Rules,
(2) They shall come into force on the date of their publication in the Official Gazette.
2. In the Income-tax Rules, 1962, in Form 27EQ, in the Annexure, in the Notes thereto, in Note 11, in the table, after the row relating to “Collection at source on sale of motor vehicle”, the following shall be inserted, namely:––
“206C |
Collection at source on sale of wrist watch |
6C |
MA |
206C |
Collection at source on sale of art piece such as antiques, painting, sculpture |
6C |
MB |
206C |
Collection at source on sale of collectibles such as coin, stamp |
6C |
MC |
206C |
Collection at source on sale of yacht, rowing boat, canoe, helicopter |
6C |
MD |
206C |
Collection at source on sale of pair of sunglasses |
6C |
ME |
206C |
Collection at source on sale of bag such as handbag, purse |
6C |
MF |
206C |
Collection at source on sale of pair of shoes |
6C |
MG |
206C |
Collection at source on sale of sportswear and equipment such as golf kit, ski-wear |
6C |
MH |
206C |
Collection at source on sale of home theatre system |
6C |
MI |
206C |
Collection at source on sale of horse for horse racing in race clubs and horse for polo |
6C |
MJ”. |
[No. 35/2025/F. No. 370142/11/2025-TPL]
ASHISH KUMAR AGRAWAL, Dy. Secy.
Note : The principal rules were published in the Gazette of India, Extraordinary, Part II, section 3, sub-section (ii), vide notification number S.O. 969 (E), dated the 26th March, 1962 and were last amended vide notification number G.S.R 221 (E), dated the 07th April, 2025.
