Case law › Notifications › 2025 › Notification No. 35/2025 [F. No. 370142/11/2025-TPL] / GSR 252(E)

Notification 22 April 2025

Notification No. 35/2025 [F. No. 370142/11/2025-TPL] / GSR 252(E)

Ministry of Finance

What this is

Notification No. 35/2025 [F. No. 370142/11/2025-TPL] / GSR 252(E) was published on 22 April 2025. Its subject is Ministry of Finance.

This amends the Income-tax Rules. What it changes is the Rules, not the Act — and a rule can never take away what the section gives.

What it does

The Income-tax (Eleventh Amendment) Rules, 2025, made under section 295 read with section 206C of the Income-tax Act, 1961. In Form No. 27EQ, in the Annexure, in Note 11 of the Notes, the table of collection codes is expanded: after the row for 'Collection at source on sale of motor vehicle' ten new rows are inserted, all under section 206C and nature-of-collection code 6C, with codes MA for a wrist watch, MB for an art piece such as an antique, painting or sculpture, MC for collectibles such as a coin or stamp, MD for a yacht, rowing boat, canoe or helicopter, ME for a pair of sunglasses, MF for a bag such as a handbag or purse, MG for a pair of shoes, MH for sportswear and equipment such as a golf kit or ski-wear, MI for a home theatre system, and MJ for a horse for horse racing in race clubs and a horse for polo.

Who it reaches

sellers of luxury goods who must collect tax at source under section 206C
persons filing the quarterly TCS statement in Form No. 27EQ
tax software and TIN facilitation centres handling collection codes
buyers of these goods, whose credit depends on correct code reporting

The provisions it speaks to

Left, the provision of the Income-tax Act, 1961 as the instrument itself names it. Right, the section of the Income-tax Act, 2025 that the department’s own concordance maps it to — which is where the same ground is now covered.

Under the 1961 Act	Now
s.3	s.3
s.206C	s.2, s.390, s.394, s.395, s.397, s.398, s.400, s.402
s.295	s.533

The instrument, as the Board published it

The department publishes this one only as a PDF, so the words below were read out of that PDF by machine. That reading can carry its own mistakes — a misread number, a broken line. Check the signed document before you rely on a figure in it.

MINISTRY OF FINANCE
(Department of Revenue)
(CENTRAL BOARD OF DIRECT TAXES)
NOTIFICATION
New Delhi, the 22nd April, 2025
G.S.R. 252(E).––In exercise of the powers conferred by section 295 read with section 206C of the Incometax 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. (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.
2. 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".
[No. 35/2025/F. No. 370142/11/2025-TPL]
ASHISH KUMAR AGRAWAL, Dy. Secy.
Note : The principal rules were published in the Gazette of India, Extraordinary, Part II, section 3, sub-section (ii),
vide notification number S.O. 969 (E), dated the 26th March, 1962 and were last amended vide notification
number G.S.R 221 (E), dated the 07th April, 2025.
Uploaded by Dte. of Printing at Government of India Press, Ring Road, Mayapuri, New Delhi-110064
and Published by the Controller of Publications, Delhi-110054.

What it changes

The rule numbers are the 1962 Rules’ own, as the notification names them. The right-hand column is the department’s own mapping into the Income-tax Rules, 2026, which renumbered nearly everything.

Forms it touches. Form No. 27EQ

From when

the date of its publication in the Official Gazette.

What to watch

The rules come into force on the date of their publication in the Official Gazette, not from the start of a quarter, so the codes must be used in the statement covering that period onwards.
This amendment only supplies reporting codes in Form No. 27EQ; the liability to collect itself arises under section 206C and not from this notification.
Each new item has its own distinct code from MA to MJ, so a single omnibus 'luxury goods' code is not available.
The principal rules were last amended by G.S.R. 221(E) dated 7 April 2025, which should be read with this amendment.

Where you meet it

In the quarterly TCS return in Form No. 27EQ and in the collection certificate and Form 26AS credit that flow from it.

An example

Ours, not the Board’s: a worked case built from the rule the instrument sets, to show how it falls out.

A dealer who collects tax at source on the sale of a yacht reports the collection in the Annexure to Form No. 27EQ under section 206C with nature of collection code 6C MD; a sale of a painting is reported under code 6C MB.

What it names

Forms it names. Form No. 27EQ

On the same provision

Other instruments in this library that name the same provision of the 1961 Act. They are not necessarily still operative, and a later one may have replaced an earlier one without saying so.

Notification No. 94/2026 [F. No. 370142/24/2026-TPL] / G.S.R. 646(E) : Income-tax (Second Amendment) Rules, 2026 : Amendment of rule 157 of the Income tax Rules, 2026 to align the definition of the specified fund with rule 114AAB of the Income tax Rules, 1962 — Ministry of Finance 21 July 2026
Notification No. 64 — [भाग II—खण् ड 3(i)] भारत का रािपत्र : असाधारण 7 16 April 2026
Notification No. 63/2026 [F. No. 370142/13/2026-TPL]/ GSR 268(E) — 2 the Gazette of INDIA : Extraordinary [Part Ii—sec. 3(i)] 10 April 2026
Notification No. 62/2026 [F. No. 370142/10/2026-TPL]/ GSR 267(E) — Ministry of Finance 10 April 2026
Notification No. 61/2026 [F. No. 370142/9/2026-TPL] / GSR 266(E) — [भाग II—खण् ड 3(i)] भारत का रािपत्र : असाधारण 3 10 April 2026
Notification No. 60/2026 [F. No. 370142/8/2026-TPL]/ GSR 265(E) — 2 the Gazette of INDIA : Extraordinary [Part Ii—sec. 3(i)] 10 April 2026

← Notification No. 38/2025 [F. No 370142/11/2025-TPL] / SO 1838(E) · Notification No. 36/2025 [F. No. 370142/11/2025-TPL] / SO 1825(E) →

What a notification is. A notification is made under a power the Act itself gives, and within that power it is law — unlike a circular, which only binds the department. Its reach is the reach of the enabling provision and no wider, and the date it carries decides from when it works.

Source: the Income Tax Department’s own published text — its page for this instrument.