20% TCS on credit card use outside India.

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bobby_123


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

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The Union Budget 2023-24 hiked TCS rates to 20%, from 5% currently, on overseas tour packages and funds remitted under LRS (other than for education and medical purposes). The new tax rates will come into effect from July 1, 2023.


Exemptions: The new tax rate will not be applicable for the following types of transactions :


Purchase of foreign goods/services from India

  • Transactions for education purposes
  • Transactions for medical purposes




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Deal Newbie Deal Newbie
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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...

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

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

Deal Cadet Deal Cadet
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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. 


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Deal Subedar Deal Subedar
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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.

Deal Cadet Deal Cadet
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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. 

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

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