Overseas debit, credit card payments up to Rs 7 lakh a yr out of LRS: Govt These transactions will not attract tax collected at source
20% TCS rule update: No tax for worldwide transactions up to ₹7 lakh thru debit playing cards or credit score cards
The government issued a rationalization on Friday mentioning that a 20% Tax series at source (TCS) may be applicable only to foreign places credit score card transactions exceeding ₹7 Lakh.
An legit announcement addressed concerns approximately the applicability of TCS to small transactions under the Liberalized Remittance Scheme (LRS) from July 1, 2023. To dispose of procedural ambiguity, it become decided that man or woman payments as much as ₹7 lakh according to monetary yr made the use of worldwide debit or credit score cards could be excluded from the LRS limits and consequently not difficulty to TCS.
The authorities order additionally showed that the present useful TCS remedy for education and fitness payments would retain. moreover, every other essential adjustments to the rules (foreign exchange management (cutting-edge Account Transactions rules), 2000) could be issued one after the other.
formerly, on Thursday, the authorities introduced the inclusion of credit card transactions in foreign foreign money under the LRS and the implementation of a 20% TCS starting July 1, 2023. those transactions were now not formerly considered a part of the LRS framework.
Home Page May 19, 2023 at 09:10PM