The CBDT issued Notification No. 35/2025 dated April 22, 2025, amending the Income-tax Rules, 1962. The Income-tax (Eleventh Amendment) Rules, 2025, introduce new provisions for collection at source on the sale of various items like wrist watches, art pieces, collectibles, yachts, sunglasses, bags, shoes, sportswear, home theatre systems, and horses for racing or polo. These changes come into effect upon publication in the Official Gazette.
In exercise of the powers conferred by section 295 read with section 206C of the Income-tax Act, 1961 (43 of 1961), the Central Board of Direct Taxes hereby makes the following rules further to amend the Income-tax Rules, 1962, namely:-
- (1) These rules may be called the Income-tax (Eleventh Amendment) Rules, 2025.
(2) They shall come into force on the date of their publication in the Official Gazette.
- In the Income-tax Rules, 1962, in Form No. 27EQ, in the Annexure, in the Notes thereto, in Note 11, in the table, after the row relating to “Collection at source on sale of motor vehicle”, the following shall be inserted, namely:––
| “206C | Collection at source on sale of wrist watch | 6C | MA |
| 206C | Collection at source on sale of art piece such as antiques, painting, sculpture | 6C | MB |
| 206C | Collection at source on sale of collectibles such as coin, stamp | 6C | MC |
| 206C | Collection at source on sale of yacht, rowing boat, canoe, helicopter | 6C | MD |
| 206C | Collection at source on sale of pair of sunglasses | 6C | ME |
| 206C | Collection at source on sale of bag such as handbag, purse | 6C | MF |
| 206C | Collection at source on sale of pair of shoes | 6C | MG |
| 206C | Collection at source on sale of sportswear and equipment such as golf kit, ski-wear | 6C | MH |
| 206C | Collection at source on sale of home theatre system | 6C | MI |
| 206C | Collection at source on sale of horse for horse racing in race clubs and horse for polo | 6C | MJ”. |
The Notification can be accessed at: https://a2ztaxcorp.net/wp-content/uploads/2025/04/CBDT-NNo.-35_2025.pdf
