Current Affairs - Economy - Discussion

A 1% Tax Collected at Source (TCS) has been introduced on luxury goods priced above ₹10 lakh, as per the provisions of the Finance Act, 2024. This includes high-end items such as luxury watches, designer handbags, and yachts. The new tax is effective from April 22 and aims to increase oversight of high-value transactions while promoting financial transparency. It also mandates that sellers comply with TCS regulations and requires buyers to undergo stricter KYC procedures. This initiative is a part of the government’s broader strategy to track and regulate luxury spending in the economy.