𝐂𝐁𝐃𝐓 𝐍𝐨𝐭𝐢𝐟𝐢𝐞𝐬 10 𝐍𝐞𝐰 𝐈𝐭𝐞𝐦𝐬 𝐟𝐨𝐫 𝐓𝐂𝐒 𝐂𝐨𝐥𝐥𝐞𝐜𝐭𝐢𝐨𝐧 – 𝐄𝐟𝐟𝐞𝐜𝐭𝐢𝐯𝐞 22 𝐀𝐩𝐫𝐢𝐥 2025 All blog, Income tax, Tax & Compliance April 25, 2025 The Central Board of Direct Taxes (CBDT), vide Notification No. 36/2025, has expanded the scope of Tax Collection at Source (TCS) under Section 206C(1F) of the Income-tax Act, 1961. 📝 𝐒𝐮𝐦𝐦𝐚𝐫𝐲 𝐨𝐟 𝐍𝐨𝐭𝐢𝐟𝐢𝐜𝐚𝐭𝐢𝐨𝐧 -𝐀𝐩𝐩𝐥𝐢𝐜𝐚𝐛𝐢𝐥𝐢𝐭𝐲: Sale of specified goods exceeding ₹10,00,000 per transaction. – 𝐓𝐂𝐒 𝐑𝐚𝐭𝐞: 1% – 𝐅𝐨𝐫𝐦 𝐟𝐨𝐫 𝐜𝐨𝐦𝐩𝐥𝐢𝐚𝐧𝐜𝐞: Form 27EQ – 𝐑𝐞𝐬𝐩𝐨𝐧𝐬𝐢𝐛𝐢𝐥𝐢𝐭𝐲: Seller to collect and deposit TCS -𝐋𝐢𝐬𝐭 𝐨𝐟 𝐍𝐞𝐰𝐥𝐲 𝐍𝐨𝐭𝐢𝐟𝐢𝐞𝐝 𝐆𝐨𝐨𝐝𝐬: [1] Wrist watches [2] Art pieces (including antiques, paintings, sculptures) [3] Collectibles (e.g., coins, stamps) [4] Yachts, canoes, rowing boats, helicopters [5] Sunglasses [6] Bags (e.g., handbags, purses) [7] Shoes [8] Sportswear and equipment (e.g., golf kits, ski-wear) [9] Home theatre systems [10]Horses used in racing or polo 𝐊𝐞𝐲 𝐂𝐨𝐧𝐬𝐢𝐝𝐞𝐫𝐚𝐭𝐢𝐨𝐧𝐬: ▪ The move focuses on luxury and lifestyle-related goods — areas previously under-monitored for TCS. ▪ Classification challenges may arise — for instance, the exclusive use of terms like “shoes” instead of “footwear.” ▪ Notably excluded: jewellery, designer apparel, and premium writing instruments — despite their high transaction values. – 𝐀𝐜𝐭𝐢𝐨𝐧 𝐏𝐨𝐢𝐧𝐭𝐬 𝐟𝐨𝐫 𝐒𝐞𝐥𝐥𝐞𝐫𝐬: Review inventory for notified items Update billing and ERP systems to capture TCS obligations Inform customers regarding TCS deduction and its availability as credit in their income tax returns 𝐈𝐧𝐭𝐞𝐫𝐞𝐬𝐭𝐢𝐧𝐠 𝐨𝐛𝐬𝐞𝐫𝐯𝐚𝐭𝐢𝐨𝐧𝐬: -No TCS yet on jewellery, designer clothes, or luxury pens -Only “shoes” mentioned – not “footwear” – opens door for classification confusion Focus is clearly shifting toward tracking luxury consumption 𝐖𝐇𝐀𝐓 𝐘𝐎𝐔 𝐍𝐄𝐄𝐃 𝐓𝐎 𝐃𝐎 𝐒𝐄𝐋𝐋𝐄𝐑𝐒:- • Collect 1% TCS at the time of receiving payment. • Deposit the collected tax with the government by the 7th of the following month. • File quarterly TCS returns using Form 27EQ. 𝐁𝐔𝐘𝐄𝐑𝐒: • Pay the additional 1% TCS over and above the invoice value. • Claim credit for the TCS while filing income tax returns. Follow Lineuptax.com for regular updates. #CBDT #IncomeTax #TCSUpdate #FinanceIndia #TaxCompliance #IndianTaxation #Section206C #LuxuryTax #BusinessCompliance #Form27EQ #Notification36 #TaxUpdate #TaxAlert #FinancialRegulations #NewTaxRules Previous Post Browse by topics 𝐂𝐁𝐃𝐓 𝐍𝐨𝐭𝐢𝐟𝐢𝐞𝐬 10 𝐍𝐞𝐰 𝐈𝐭𝐞𝐦𝐬 𝐟𝐨𝐫 𝐓𝐂𝐒 𝐂𝐨𝐥𝐥𝐞𝐜𝐭𝐢𝐨𝐧 – 𝐄𝐟𝐟𝐞𝐜𝐭𝐢𝐯𝐞 22 𝐀𝐩𝐫𝐢𝐥 2025 Much-Awaited SOP for GST Registrations Issued by CBIC! 𝗜𝗺𝗽𝗼𝗿𝘁𝗮𝗻𝘁 𝗚𝗦𝗧 𝗨𝗽𝗱𝗮𝘁𝗲: 𝗖𝗕𝗜𝗖 𝗜𝘀𝘀𝘂𝗲𝘀 𝗖𝗹𝗮𝗿𝗶𝗳𝗶𝗰𝗮𝘁𝗶𝗼𝗻𝘀 𝗼𝗻 𝗚𝗦𝗧 𝗔𝗽𝗽𝗹𝗶𝗰𝗮𝗯𝗶𝗹𝗶𝘁𝘆 𝗳𝗼𝗿 𝗩𝗮𝗿𝗶𝗼𝘂𝘀 𝗦𝗲𝗿𝘃𝗶𝗰𝗲𝘀 🚨 Important ITAT-Mumbai Ruling on Section 56(2)(x) 🚨 Government initiatives to boost Textile Industry in India Production Linked Incentive PLI Scheme in India: An Overview Sectors benefited and Key Achievements Lineup Tax Consultants PM MITRA scheme for textiles sector : to boost FDI and local investment