CBDT releases FAQs on Notification No. 36/2025 [F. No. 370142/11/2025-TPL] / SO 1825(E
FAQ
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(1F) was amended to provide that TCS will also
be levied on any other goods of value exceeding ten lakh rupees, as may be notified by the
Central Government in the Official gazette.
Q.2 Which are the luxury goods of value exceeding ten lakh rupees on which TCS will be
levied?
Ans. Vide CBDT Notification No. 36/2025 dated 22.4.2025 SO 1825(E), the following goods
of the value exceeding ten lakh rupees have been notified for collection of tax at source as
specified in sub-section (1F) of section 206C of the Act –
| S. No | Nature of goods |
| 1. | any wrist watch |
| 2. | any art piece such as antiques, painting, sculpture |
| 3. | any collectibles such as coin, stamp |
| 4. | any yacht, rowing boats, canoes, helicopters |
| 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. |
Q.3 Whether TCS will be levied on sale of a single item of the notified goods of value
exceeding ten lakh rupees ?
Ans. Yes, TCS will be levied on sale of a single item of the goods of the nature specified in the
above table which is of the value exceeding ten lakh rupees.
Q.4 When will the new provisions become effective?
Ans. The new provisions will become effective from the date of publication of notification i.e.
22.04.2025