New Tax On Luxury! Helicopters, Handbags & High-End Hobbies Now Cost More

Planning to treat yourself to a Cartier watch, a luxury handbag or a high-end home theatre system? You might want to factor in a new cost. From 22nd April 2025, the Central Board of Direct Taxes (CBDT) has implemented a 1% Tax Collected at Source (TCS) on luxury goods priced above ₹10 lakh — part of the long-awaited Budget 2024 proposal finally taking effect. In this explainer, Sakshi Batra of Business Today breaks down what qualifies as a "luxury good", how this tax works, and why it matters to both buyers and the taxman. From Rolexes to yachts, if your next indulgence screams opulence, the government wants its cut — and if you're not furnishing your PAN, be prepared for a steep 20% TCS instead. Watch now to understand how this new rule could impact your luxe lifestyle choices.