20% TDS on international transactions
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Did banks start charging 20% TDS already or will it happen in April? I wonder why nobody is talking about it as it simply means if you invest 1000$ in US stocks, you will pay 200$ just to gov. Even if you try to keep track of international transactions to claim deductions, it will be a mess. We were worried about markup and now this. There is no lower limit on this 20% TDS so even if you do 1rs transaction, it will have 20% TDS.
Edit: Source : https://www.indmoney.com/articles/budget-2023-t...
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Especially if you are trading in cryptos and other investment apps.
Changed it.
plz explain how it is robbery?
Thread title needs a change. This is for outward remittances
Edit: Seems tcs applicable on online/offline debit/credit/forex card payments too (with few exceptions like Medical and education)
Can anybody confirm Is this true? I have a few SIP's going in Indmoney us stock & it will be pretty big hit and would have to stop it instantly if true
OP can you share an reference article on same?
https://www.indmoney.com/articles/budget-2023-t...
The Union Budget 2023 proposes a Tax Collection at Source (TCS) for foreign outward remittance under LRS (other than for Education and medical purpose) of 20% applicable from July 1, 2023. This will come into effect after the bill is passed. Before this proposal, the TCS of 5% was applicable on foreign outward remittances above INR 7 lakhs.
@PlaYITsmooTH can u suggest
Seriously? 😢
Paji galat soch rhe ho.. @kukdookoo
Sahab chahte hai ki sare deshwasi paisa Swiss account me rakhe aur jab desh me lana ho to Adani ki tarah Mauritius se route kre. Nudge policy hai ye.. sabhi ko modern n smart banana chahte hain.
I tried my best, but these terminologies and rates are very difficult for me to understand.
I just want to know from the knowledgeable Dimers involved in this topic _ whether the cost of hosting and domains is going to increase or not.. as @Seinfeld Bro mentioned.
Even transferring funds for professional and educational purposes TDS will ve deducted?
Thanks for the thread. Firstly, as others suggested please mention in title it is on outward remittances which I think would make the scenario be clear 
.
Also then LRS doesn't seem attractive anymore since it already has conversion charges, forex difference between buy and sell, bank charges etc.
Would buying via international MFs or ETFs listed on BSE/NSE be considered as foreign outward remits ? (Looks like not but wanted to know if anyone has idea)
No opinion per se on the taxing but just a thought that maybe now LRS isn't a good investment since it doesn't seem to be beneficial except for high value investments and long term profits.
Glad they kept the current rates at least for education and medical purposes
What do the experts say?
According to Sanjeev Sachdeva, partner at Luthra and Luthra Law Offices India, it seems that the analysis of the Centre has been that high net individuals (HNIs) are using the LRS scheme to transfer large amounts outside India, but their income tax payments and compliances have not been commensurate.
"The proposal is intended to ensure that such persons have discharged their IT liabilities suitably," he said.
If I book an international tour with Makemytrip and pay via credit card will it still charge me 20% TCS?
I fail to grasp the Even if you try to keep track of international transactions to claim deductions, it will be a mess. part though.