No TCS on foreign remittances of up to Rs 7 lakh, credit card spending overseas; higher rates to kick in from October 1
TCS on foreign remittances: There will be no tax collection at source (TCS) on foreign remittances of up to Rs 7 lakh per financial year, said Ministry of Finance. It has clarified that transactions done through international credit cards while being overseas would not be counted as LRS transactions and hence not subject to TCS. For overseas tour package, a TCS of 5 per cent will be levied if the amount is up to Rs 7 Lakh. The higher rate of TCS will come into effect from October 1, 2023.
Original Article Source Credits: The Economic Times, https://economictimes.indiatimes.com/
Article Written By: Anulekha Ray
Original Article Posted on: Jul 06, 2023
Link to Original Article: https://economictimes.indiatimes.com/wealth/tax/new-tcs-rule-to-come-into-effect-from-october-1-2023-finance-ministry/articleshow/101345956.cms?from=mdr