20% TCS on credit card use outside India.

This post seems to be a word-to-word exact copy of a Twitter Thread without any credits being given. 

"20% TCS on credit card use outside India.The biggest risk to India story is Finance think tank. Keep changing taxes n increase burden on the same 4-5 cr people who pay tax -thru STT, capital gain, dividend, TCS, angel tax, fringe benefit tax etc

Source: https://twitter.com/connectgurmeet/status/16590...

thedealguy wrote:

This post seems to be a word-to-word exact copy of a Twitter Thread without any credits being given. 

"20% TCS on credit card use outside India.The biggest risk to India story is Finance think tank. Keep changing taxes n increase burden on the same 4-5 cr people who pay tax -thru STT, capital gain, dividend, TCS, angel tax, fringe benefit tax etc

Source: https://twitter.com/connectgurmeet/status/16590...

That what he do on regular basis

https://www.desidime.com/discussions/10-common-...

Hmm if you are accepting that only 4-5 cr people pay the tax then this is a good move. 

babayanga5 wrote:

Hmm if you are accepting that only 4-5 cr people pay the tax then this is a good move. 

How? They could have simply made a rule that said only those filing ITR could enable intl txns on their cards.

guest_999 wrote:
How? They could have simply made a rule that said only those filing ITR could enable intl txns on their cards.

Well then the govt should make it that any and all nb UPI debit credit domestic and international transactions should be enabled only if person files itr. 

babayanga5 wrote:

Well then the govt should make it that any and all nb UPI debit credit domestic and international transactions should be enabled only if person files itr. 

Why dragging domestic txns into this? If govt can apply logic that having 20% TCS will help improve tax collection then the logic of allowing intl txns only on those cards whose linked PAN file itr is even better for this purpose. As of now, this 20% TCS is nothing but a typical govt mistake.

guest_999 wrote:
Why dragging domestic txns into this? If govt can apply logic that having 20% TCS will help improve tax collection then the logic of allowing intl txns only on those cards whose linked PAN file itr is even better for this purpose. As of now, this 20% TCS is nothing but a typical govt mistake.

It's not a mistake. Look at number of people having cc in India. 

But concentration of people on desidime having cc Is high. That's why you think this is a huge problem. 

babayanga5 wrote:

It's not a mistake. Look at number of people having cc in India. 

But concentration of people on desidime having cc Is high. That's why you think this is a huge problem. 

For having CC pan is must. Govt won't get much benefit from this rule as genuine users will cut down on spending on intl txns not to mention they were already paying correct taxes from the beginning. Non-genuine users will think of some other ways not to mention they can always file fake itr of 3-4 lakhs which anyway will have zero tax liability so what exactly is the point.

babayanga5 wrote:

Hmm if you are accepting that only 4-5 cr people pay the tax then this is a good move. 

nno.

Govt could have just asked bank to report all foreign transaction to them...latter IT can handle it .

Just like how 10L plus CC spend, 10L FD and every MF buy and sell is reported to IT.

guest_999 wrote:
For having CC pan is must. Govt won't get much benefit from this rule as genuine users will cut down on spending on intl txns not to mention they were already paying correct taxes from the beginning. Non-genuine users will think of some other ways not to mention they can always file fake itr of 3-4 lakhs which anyway will have zero tax liability so what exactly is the point.

So as you say, file a fake itr bro. And rest easy. 

Here is comparison what has been changed:

Sr.No	Purpose of remittance	Present applicable Tax Regime	New Tax Regime as per Budget 2023 - w.e.f Jul 1, 2023
1	Education : If the amount being remitted overseas is a loan obtained from any financial institution as defined in Section 80E.	0.5% of the amount or the aggregate of the amount in excess of ₹7 lakh in a Financial Year.	No Change
2	Education and Medical	5% of the amount or the aggregate of the amounts in excess of ₹7 lakh in a Financial Year.	No Change
3	Overseas tour package	5% without any threshold limit. Example: ₹5 lakh equivalent of the tour package will incur a TCS of ₹25,000.	20% without any threshold limit. Example: ₹5 lakh equivalent of the tour package will incur a TCS of ₹1,00,000.
4	All other cases/ purposes	5% of the amount or the aggregate of the amounts in excess of ₹7 lakh. Example: ₹10 lakh equivalent amount remitted will incur a TCS of ₹15,000. (TCS applied on ₹3 lakh, excess of the ₹7 lakh threshold limit @ 5%, will be ₹15,000.)	20% without any threshold limit. Example: ₹10 lakh equivalent amount remitted will incur a TCS of ₹2,00,000. (Flat 20% TCS will be applicable for all other purposes except E

babayanga5 wrote:

So as you say, file a fake itr bro. And rest easy. 

I am saying govt rule is pointless because it will unnecessarily harass genuine users who anyway pay tax correctly while encourage non-genuine users to either file fake ITR or use other ways like crypto.

guest_999 wrote:
I am saying govt rule is pointless because it will unnecessarily harass genuine users who anyway pay tax correctly while encourage non-genuine users to either file fake ITR or use other ways like crypto.

Cant understand how fake ITR is filed...
Also how are you expecting to purchase crypto?? 1%TDS plus the huge loss in exchange(Buying/selling).

Rule is pointless though .. but easy to bypass via cash mode or making purchase in INR. also TCS can be adjusted against Advance tax obligations .. overall stupid move by govt

Sudarshan61 wrote:
Cant understand how fake ITR is filed...
Also how are you expecting to purchase crypto?? 1%TDS plus the huge loss in exchange(Buying/selling).

Rule is pointless though .. but easy to bypass via cash mode or making purchase in INR. also TCS can be adjusted against Advance tax obligations .. overall stupid move by govt

Reporting less than taxable income so in reality earning more than 5 lakhs by reselling imported stuff from abroad but showing income as 4 lakh which under new tax system means zero tax.

Many foreign sites still allow buying crypto without conforming to Indian crypto rules & even have ways to mask the txn as something else instead of crypto(some ecomm/service site etc in txn description).

guest_999 wrote:
Many foreign sites still allow buying crypto

Will attract 20% TCS... via both Debit and credit card...
So not sure how crypto is going to help

Just learned that

International CC usage and TCS.

• Will NOT apply on the payments for purchase of foreign goods/services from India such as newspapers or online streaming services.
• Will NOT apply on Company/Business trips.

Source: https://twitter.com/ShivaniGupta_5/status/16591...

@Sudarshan61 @guest_999

Another thing which probably is the case, if the payment is in inr then TCS won't apply. 

"However, if these purchases are made in Indian rupees, they will not be counted against LRS and face any TCS."
- Source

I guess the uproar worked. So hopefully hosting / software purchases etc etc.. will be outside this (if paid in INR).

Seinfeld wrote:

Just learned that

International CC usage and TCS.

• Will NOT apply on the payments for purchase of foreign goods/services from India such as newspapers or online streaming services.
• Will NOT apply on Company/Business trips.

Source: https://twitter.com/ShivaniGupta_5/status/16591...

@Sudarshan61 @guest_999

Another thing which probably is the case, if the payment is in inr then TCS won't apply. 

"However, if these purchases are made in Indian rupees, they will not be counted against LRS and face any TCS."
- Source

I guess the uproar worked. So hopefully hosting / software purchases etc etc.. will be outside this (if paid in INR).

Sad life. Chutiya govt hai. Majority ke baad bhi kuch nahi kar sakti. 

Congress ne toh isko autocracy declare kardene aur Modi ko Hitler bolne ke baad bhi. Ghanta Hitler banega re Modi aise.

3-4 hashtag kya trend hogaye sala u turn le liya. 

Seinfeld wrote:

Just learned that

International CC usage and TCS.

• Will NOT apply on the payments for purchase of foreign goods/services from India such as newspapers or online streaming services.
• Will NOT apply on Company/Business trips.

Source: https://twitter.com/ShivaniGupta_5/status/16591...

@Sudarshan61 @guest_999

Another thing which probably is the case, if the payment is in inr then TCS won't apply. 

"However, if these purchases are made in Indian rupees, they will not be counted against LRS and face any TCS."
- Source

I guess the uproar worked. So hopefully hosting / software purchases etc etc.. will be outside this (if paid in INR).

And how would one decide if it's business spend /company spend or personal spend...

Also no TCS when you take services like Netflix...but the moment let say you buy anything in USD or merchant not in India via online shopping ..boom you will be charged TCS .. how will bank know if you are in India or overseas while doing such transactions... Billing does not matter as it will be the merchant who does conversion and bank will treat it as foreign transaction (eg. HDFC charges 1% DCC...how do they know it's foreign transaction 😉)

Even the govt clarification are not clear. 😂

Sudarshan61 wrote:

And how would one decide if it's business spend /company spend or personal spend...

Also no TCS when you take services like Netflix...but the moment let say you buy anything in USD or merchant not in India via online shopping ..boom you will be charged TCS .. how will bank know if you are in India or overseas while doing such transactions... Billing does not matter as it will be the merchant who does conversion and bank will treat it as foreign transaction (eg. HDFC charges 1% DCC...how do they know it's foreign transaction 😉)

Even the govt clarification are not clear. 😂

I guess we have 2 options for payments online while sitting in India (just pre thoughts, till the FinMin confirms):

* Pay in INR after the currency conversion done by the website we are transacting at, like paypal does. This already has high amount of conversion fees (forex markup). This won't attract TCS.
* Pay in Forex and banks will deduct TCS.

The 1st way makes us lose out on lower markup fees given by cards like onecard/ niyo/ etc.. Yet save on doling out extra money which will come max after a year.
2nd way we use our best card to save on markup charges and give some support to the government in the way of TCS, and get back the money after filing (mostly interest lost for a year).

Seinfeld wrote:
I guess we have 2 options for payments online while sitting in India (just pre thoughts, till the FinMin confirms):

* Pay in INR after the currency conversion done by the website we are transacting at, like paypal does. This already has high amount of conversion fees (forex markup). This won't attract TCS.
* Pay in Forex and banks will deduct TCS.

The 1st way makes us lose out on lower markup fees given by cards like onecard/ niyo/ etc.. Yet save on doling out extra money which will come max after a year.
2nd way we use our best card to save on markup charges and give some support to the government in the way of TCS, and get back the money after filing (mostly interest lost for a year).

Both are international transactions.

Only difference is who is doing the currency conversion.

Probably what clarification meant was if you buy netflix in india you wont be charged TCS... or Amazon... as they are Indian based and those transactions are not considered as international  

Can I contact a local currency exchange guy to exchange my INR to say USD and get it without bill and escape TCS and anything else too? This way also intend to pay via cash abroad.

This government is taxing me to death and I don't want to.

Sudarshan61 wrote:
Both are international transactions.

Only difference is who is doing the currency conversion.

Probably what clarification meant was if you buy netflix in india you wont be charged TCS... or Amazon... as they are Indian based and those transactions are not considered as international  

No bro thats different thing.

This is actually talking about indian currency payment to avoid any TCS.

Basically most are suggesting to disable international txns and do payments in indian currency, to avoid any TCS deduction mistakenly.

Feels like its rolled back, maybe not in full. But no longer affects us.

Source - Ministry of Finance

Well the common man is always in MAJORITY.

@Ramta_Jogi @Kochiro @kukdookoo @kapaalaa @Demondealer @Lobogris @BubbleBoyChickenLittle @legend101 @some1anywhere @TempAcc @Ash-D 

@caks2006407 @panchabhut

Govt clarifies: No TCS to be deducted on overseas spending of up to Rs 7 lakh in a year by credit or debit cards

Seinfeld wrote:

Feels like its rolled back, maybe not in full. But no longer affects us.

Source - Ministry of Finance

Well the common man is always in MAJORITY.

@Ramta_Jogi @Kochiro @kukdookoo @kapaalaa @Demondealer @Lobogris @BubbleBoyChickenLittle @legend101 @some1anywhere @TempAcc @Ash-D 

@caks2006407 @panchabhut

Thank you. We had already started finding "phoren phrends" who'd pay on our behalf and we reimburse their families back home 😅

rak007 wrote:

Can I contact a local currency exchange guy to exchange my INR to say USD and get it without bill and escape TCS and anything else too? This way also intend to pay via cash abroad.

This government is taxing me to death and I don't want to.

Yes. Quite easy. I always do that. Just buy US $ or whatever currency when the exchange rate is good. Of course carrying large amounts is risky as you won't be able to explain if you are caught. If you buy it officially with a receipt then it is fine of course. Otherwise just carry around 1 to 2k in $ unofficially. 

Ramta_Jogi wrote:

Thank you. We had already started finding "phoren phrends" who'd pay on our behalf and we reimburse their families back home 😅

Planning something similar here too.

P.S. check PM