By Financekaaksha.com
Why is the ITD doing this?
Until now, 1% TCS applied only to cars costing over ₹10 lakh. Extending it to other luxury goods helps the government track big-ticket spending and curb untaxed cash purchases, preventing revenue leaks in the luxury segment.
When you buy luxury goods, the seller collects 1% TCS and deposits it against your PAN. You can then claim this amount as a tax credit when you file your ITR—just like TDS on your salary. Steps are :
Get the TCS certificate from the seller
Check the amount in your Form 26AS
Enter it in your ITR - any excess TCS over your tax liability will be refunded