New TCS Reporting Codes for Luxury Goods in Form 27EQ
“New TCS Reporting Codes for Luxury Goods in Form 27EQ | CBDT Notification 2025” – Income-tax (Eleventh Amendment) Rules, 2025
The Central Board of Direct Taxes (CBDT) has amended the Income-tax Rules, 1962 under the powers granted by Section 295 read with Section 206C of the Income-tax Act, 1961.
Key Points:
- Rule Title: Income-tax (Eleventh Amendment) Rules, 2025
- Effective Date: From the date of publication in the Official Gazette
Amendment Made:
- Form No. 27EQ (Annexure – Note 11) is updated to include new TCS (Tax Collected at Source) reporting categories under Section 206C for high-value luxury goods.
New Entries Added for TCS Reporting:
| Item | Nature of Collection | Code |
|---|---|---|
| Wrist Watch | Sale of wrist watch | 6C MA |
| Art Pieces | Sale of antiques, painting, sculpture | 6C MB |
| Collectibles | Sale of coin, stamp | 6C MC |
| Boats & Aircraft | Sale of yacht, canoe, helicopter | 6C MD |
| Sunglasses | Sale of sunglasses | 6C ME |
| Bags | Sale of handbag, purse | 6C MF |
| Shoes | Sale of shoes | 6C MG |
| Sportswear & Equipment | Sale of golf kit, ski-wear, etc. | 6C MH |
| Home Theatre | Sale of home theatre system | 6C MI |
| Horses | Sale of horses for racing or polo | 6C MJ |
This amendment supports the recent notification imposing 1% TCS on luxury items sold above ₹10 lakh. It ensures that sellers report such transactions accurately in Form 27EQ.
Also Read:
- Recommendations of the 55th Meeting of the GST Council
- Changes in GST and Income Tax during the Financial Year 2024-25
- TDS and TCS provisions applicable from April 1, 2025
- Rationalizing TDS: A Deep Dive into Budget 2025’s Proposals
Go To Memorandum
Go To Finance Bill 2025
Read More on Union Budget 2025
CA Cult YouTube:
1. TCS Credit of minor in the hands of Parent | Clubbing | Union Budget 2024
2. Calculation of Income Tax FY 2024-25 | Old vs New Regime | For Salaried Employees
Also Read: New Income-tax Bill 2025 Navigator
