Vote down Reasons
Around 1 month ago a new rule was announced by govt putting 20% tcs on all international txns & after much discussion the consensus seem to be that it only applied to foreign remittance & not typical international online txns done on international ecomm sites using cards. However it is now confirmed that this applies to all international txns even those done using cards.
https://timesofindia.indiatimes.com/business/in...
MUMBAI: Banks fear that usage of cards for cross-border transactions could see a dip because of the imposition of tax collected at source (TCS) on such transactions. Some said that this was going against the earlier objective of fuller capital account convertibility.
Speaking on the Finance Bill 2023 in the Lok Sabha, finance minister Nirmala Sitharaman said that cross-border credit card payments are currently not captured under the liberalised remittance scheme (LRS), and they escape the TCS. The finance minister said that the Reserve Bank of India (RBI) would take steps to ensure that these transactions come under the ambit of TCS.
The announcement came as a surprise to banks. Speaking to TOI, a senior banker said that the details of foreign transactions are already available and can be shared with the tax authorities. What the TCS on such transactions would do would be to force everyone making a cross-border transaction to file returns.
“Credit and debit cards are used largely for personal consumption expenditure and not for remittances,” said Sandeep Ghosh, Visa’s group country manager in India and South Asia. He added that there had been a substantial shift in cross-border payments from cash to cards and digital payments in recent years.
“The TCS on international card payments may inhibit the usage of cards for these transactions. As an industry, we would be keen to work closely with the government to understand and help solve the issue they aim to address with this move,” said Ghosh.
Ebixcash World Money ED & business head M Hariprasad said, “The tax collection at source on the purchase of prepaid forex cards had already been under the purview of LRS, whereas the same is now applicable even on rupee-denominated card spends for overseas travel-related payments.”
“While the new TCS law comes into effect from July 1, the peak outbound leisure travel season is from April to June and hence may not be able to gauge any adverse impact immediately,” he added.
Bankers said that it is not just the rich who make cross-border payments. Credit cards are used to make cross-border payments for software, internet services, educational material and online courses. Some foreign exchange money changers say that the tax collection could lead to an increase in the operations of unofficial money changers.
@Ramta_Jogi @Kochiro @kukdookoo @Seinfeld @kapaalaa @Demondealer @Lobogris @BubbleBoyChickenLittle @legend101 @some1anywhere @TempAcc @Ash-D
20% TCS means this amt will be considered as payment of advance tax as per your income tax return which you will have to file later so if your tax payable amt comes out to be zero then this entire amt will be refunded else it will be adjusted against your payable tax in itr & balance if any will be refunded.
TCS stands for Tax Collected at Source. In the context of this article, this tax can be collected from you when you send money abroad. Sending money doesn’t necessarily mean sending it to a person. It could even mean travelling abroad, buying assets (shopping included), and investing abroad.
The LRS, or the Liberalised Remittance Scheme, is meant to help you make international transactions easily. Before this Budget, under the LRS, the TCS was at 5% for remittances exceeding ₹7 lakh.
This TCS is now hiked all the way up to 20% from 5% for all remittances (remittance is any money you send abroad) except those concerning education or medical treatment.
The new TCS comes into effect July 1st 2023 onwards. Does this mean medical and education remittances are exempt from TCS? Nope. You’ll still be taxed at 5% for amounts exceeding ₹7 lakh.
long live Adani and Ambani
This will have a negative impact on forex flow as those who go to a foreign country and earn in foreign currency would now prefer to keep the money in foreign acct instead of bringing them to India.
panchabhut wrote:long live Adani and Ambani
FM seems to be making sure that whatever Adani had lost in market capitalization, comes back to him through such stupid and nonsense laws/amendments.
Very good step.
Mai kab se chahta tha. Aisa kuch step liya jaye. Mai jo chahta hu ek na ek din ho he jata hai.
Kabhi kabhi lagta hai apun he bhagwan hai. 😛
But 20% kuch jada hai aur sahi kaha hai "Some foreign exchange money changers say that the tax collection could lead to an increase in the operations of unofficial money changers."
Aur China k tarah Indian govt ko incentives dene chahiye direct customers ko International transactions RuPay Card or UPI se karne par but hai RuPay Card or UPI abhi ready bhi nhi hai har jagha international transaction k liye.
abhishek012 wrote:But bhai agar upi aur rupay card bhi available hotey intl txns kay liye tab un par bhi ye 20% tcs lagta toh what's the difference.Very good step.
Mai kab se chahta tha. Aisa kuch step liya jaye. Mai jo chahta hu ek na ek din ho he jata hai.
Kabhi kabhi lagta hai apun he bhagwan hai. 😛
But 20% kuch jada hai aur sahi kaha hai "Some foreign exchange money changers say that the tax collection could lead to an increase in the operations of unofficial money changers."
Aur China k tarah Indian govt ko incentives dene chahiye direct customers ko International transactions RuPay Card or UPI se karne par but hai RuPay Card or UPI abhi ready bhi nhi hai har jagha international transaction k liye.
guest_999 wrote:
But bhai agar upi aur rupay card bhi available hotey intl txns kay liye tab un par bhi ye 20% tcs lagta toh what's the difference.
Hai, Indian Govt ache steps jarur lete hai but sahi dhang se nhi leta hai, jiske chalte hamesa ulta kand he hota hai.
Zero MDR kar k RuPay debit card ko bhi barbad kar raha hai. Decision galat nahi hai but only Jan dhan yojna card, kisan card aur baki govt scheme RuPay debit cards ko karoge na.
RuPay Platinum and Select debit card ko chorr de but nahi. Hamesa ulte kand karte hai Indian govt.
Aur baat BJP ya congress ki nahi hai. Congress bhi aisa he karte the.
For someone planning to move abroad, how will this affect their current expenditure?
Typically, students pay for general tests, application fees, first-semester tuition, and insurance through international payment gateways from India. I assume that these expenses will take a hit, but I'm not sure if ATM withdrawals through NiYO Global/Forex will also be affected.
TempAcc wrote:For someone planning to move abroad, how will this affect their current expenditure?
Typically, students pay for general tests, application fees, first-semester tuition, and insurance through international payment gateways from India. I assume that these expenses will take a hit, but I'm not sure if ATM withdrawals through NiYO Global/Forex will also be affected.
I'm curious too
abhishek012 wrote:Very good step.
Mai kab se chahta tha. Aisa kuch step liya jaye. Mai jo chahta hu ek na ek din ho he jata hai.
Kabhi kabhi lagta hai apun he bhagwan hai. 😛
But 20% kuch jada hai aur sahi kaha hai "Some foreign exchange money changers say that the tax collection could lead to an increase in the operations of unofficial money changers."
Aur China k tarah Indian govt ko incentives dene chahiye direct customers ko International transactions RuPay Card or UPI se karne par but hai RuPay Card or UPI abhi ready bhi nhi hai har jagha international transaction k liye.
Aaj rupay bhaiyya khush toh hoge bohut 
Btw what to expect from this govt... That aunty was defence minister and role was straight away switched to finance minister 2 years ago !
Toh aise logon ka kya Gyan aur ek expect karoge... Meanwhile moodi used political power to jail RaGa ..pehle freedom of speech gaya ab democracy! Aage aage dekho kya hota hai
Aur ek chiz batao , Microsoft certification ke liye toh Pearson vue se payment karte the woh bhi foreign transaction ho jayega kya 
TempAcc wrote:The new rule is for other than education & medical purposes but this I assume apply when you remit money via bank accs & not cards & definitely foreign ATM withdrawals won't come under this by default(may need to remit money from Indian bank acc to foreign bank acc & then withdraw from there or submit some sort of paper proof with receipts etc to show money paid for college/hospital fee abroad).For someone planning to move abroad, how will this affect their current expenditure?
Typically, students pay for general tests, application fees, first-semester tuition, and insurance through international payment gateways from India. I assume that these expenses will take a hit, but I'm not sure if ATM withdrawals through NiYO Global/Forex will also be affected.
raj_all wrote:Any txn that needs you to enable "international txns" in your card setting will come under this rule.Btw what to expect from this govt... That aunty was defence minister and role was straight away switched to finance minister 2 years ago !
Toh aise logon ka kya Gyan aur ek expect karoge... Meanwhile moodi used political power to jail RaGa ..pehle freedom of speech gaya ab democracy! Aage aage dekho kya hota hai
Aur ek chiz batao , Microsoft certification ke liye toh Pearson vue se payment karte the woh bhi foreign transaction ho jayega kya
abhishek012 wrote:Very good step.
Mai kab se chahta tha. Aisa kuch step liya jaye. Mai jo chahta hu ek na ek din ho he jata hai.
Kabhi kabhi lagta hai apun he bhagwan hai. 😛
But 20% kuch jada hai aur sahi kaha hai "Some foreign exchange money changers say that the tax collection could lead to an increase in the operations of unofficial money changers."
Aur China k tarah Indian govt ko incentives dene chahiye direct customers ko International transactions RuPay Card or UPI se karne par but hai RuPay Card or UPI abhi ready bhi nhi hai har jagha international transaction k liye.
Welcome to the club,
Increase Rupay adoption by giving benefits is good,
charging TCS so people stop spending at all and use other methods is not good.
Government indirectly endorsing crypto. 😂
Stupid jokers.
raj_all wrote:Anyway, I think it will not be implemented.Aaj rupay bhaiyya khush toh hoge bohut
Has Govt of India lost their minds? There HAS to be a baseline high amount which isn't taxed. e.g. Tax above 5 lakh or something but not transactions below it!
abhishek012 wrote:Very good step.
Mai kab se chahta tha. Aisa kuch step liya jaye. Mai jo chahta hu ek na ek din ho he jata hai.
Kabhi kabhi lagta hai apun he bhagwan hai. 😛
But 20% kuch jada hai aur sahi kaha hai "Some foreign exchange money changers say that the tax collection could lead to an increase in the operations of unofficial money changers."
Aur China k tarah Indian govt ko incentives dene chahiye direct customers ko International transactions RuPay Card or UPI se karne par but hai RuPay Card or UPI abhi ready bhi nhi hai har jagha international transaction k liye.
Chhoti-2 companies ko lootne wala kya 20% Tax dega. 😁
some1anywhere wrote:Has Govt of India lost their minds? There HAS to be a baseline high amount which is isn't taxed. e.g. Tax above 5 lakh or something but not transactions below it!
Well it isn't exactly tax, you can get refund after filing itr but yes you need to wait anywhere from few months to a year to get back this extra 20%.
@abhishek012 That is why more chances of this being implemented as it is not exactly tax.
raj_all wrote:Btw what to expect from this govt... That aunty was defence minister and role was straight away switched to finance minister 2 years ago !
Toh aise logon ka kya Gyan aur ek expect karoge... Meanwhile moodi used political power to jail RaGa ..pehle freedom of speech gaya ab democracy! Aage aage dekho kya hota hai
Aur ek chiz batao , Microsoft certification ke liye toh Pearson vue se payment karte the woh bhi foreign transaction ho jayega kya
LOL, If RaGa goes to jail, it will be because of his own fault, BJP has no hands in this.
But Wait!
Believe me or not but RaGa is a secret agent of BJP. BJP will not be able to do as much damage to Congress in next 100 years as RaGa will do if he stays in Congress party. 😀
If BJP has to win the next election, then RaGa has to continue as Congress leader.
How many people agree with me ?
abhishek012 wrote:But he lost his seat naa.. now no more opposition..LOL, If RaGa goes to jail, it will be because of his own fault, BJP has no hands in this.
But Wait!
Believe me or not but RaGa is a secret agent of BJP. BJP will not be able to do as much damage to Congress in next 100 years as RaGa will do if he stays in Congress party. 😀
If BJP has to win the next election, then RaGa has to continue as Congress leader.
How many people agree with me ?
guest_999 wrote:Still i believe, it will not be implemented.Well it isn't exactly tax, you can get refund after filing itr but yes you need to wait anywhere from few months to a year to get back this extra 20%.
@abhishek012 That is why more chances of this being implemented as it is not exactly tax.
abhishek012 wrote:LOL, If RaGa goes to jail, it will be because of his own fault, BJP has no hands in this.
But Wait!
Believe me or not but RaGa is a secret agent of BJP. BJP will not be able to do as much damage to Congress in next 100 years as RaGa will do if he stays in Congress party. 😀
If BJP has to win the next election, then RaGa has to continue as Congress leader.
How many people agree with me ?
You first celebrate these backbreaking charges bro, we can discuss RaGa the eternal amateur some other time.
raj_all wrote:Ya and its dangerous for BJP party.
But he lost his seat naa.. now no more opposition..
Btw your statement reminded me of firefox browser which is chrome competitor but yet majority of revenue coming from Google only
Ramta_Jogi wrote:Similarly last minute change of removing indexation benefit on debt mutual fund.FM seems to be making sure that whatever Adani had lost in market capitalization, comes back to him through such stupid and nonsense laws/amendments.
abhishek012 wrote:Jinka naam A se start hota hai un par 50% lagna chahiye 20 ki jagahVery good step.
Mai kab se chahta tha. Aisa kuch step liya jaye. Mai jo chahta hu ek na ek din ho he jata hai.
Kabhi kabhi lagta hai apun he bhagwan hai. 😛
But 20% kuch jada hai aur sahi kaha hai "Some foreign exchange money changers say that the tax collection could lead to an increase in the operations of unofficial money changers."
Aur China k tarah Indian govt ko incentives dene chahiye direct customers ko International transactions RuPay Card or UPI se karne par but hai RuPay Card or UPI abhi ready bhi nhi hai har jagha international transaction k liye.
abhishek012 wrote:He will get for sure. Govt creating mockery of itself. Just see the beautiful video of Yogendra Yadav on Facebook explaining the complete propaganda
Ya and its dangerous for BJP party.
If a highly qualified member is selected for Congress leader then high chance BJP will lose next election.
The Prime Minister and the President must use (or shall I say misuse) their emergency power and grant pardon to RaGa.
Hope RaGa gets his seat back soon.
abhishek012 wrote:U and only ULOL, If RaGa goes to jail, it will be because of his own fault, BJP has no hands in this.
But Wait!
Believe me or not but RaGa is a secret agent of BJP. BJP will not be able to do as much damage to Congress in next 100 years as RaGa will do if he stays in Congress party. 😀
If BJP has to win the next election, then RaGa has to continue as Congress leader.
How many people agree with me ?
log adani ambani toh eshe bolte hai jese ki pata nahi enki jeb se kyaa chura liya . btw yeah presnt wali govt aane se pehle woh log marine drive pe vada pav ka thela lagte the enh logo k hisab se... 
raman12 wrote:
Similarly last minute change of removing indexation benefit on debt mutual fund.
She has literally destroyed the whole debt fund market. Go to a circus, don't be surprised to see a clown. Problem is that we are the animals of the circus made to dance to the tunes of that f**k*ng clown just to please the audience.
long live Adani and Ambani
This will have a negative impact on forex flow as those who go to a foreign country and earn in foreign currency would now prefer to keep the money in foreign acct instead of bringing them to India.
Btw what to expect from this govt... That aunty was defence minister and role was straight away switched to finance minister 2 years ago !
Toh aise logon ka kya Gyan aur ek expect karoge... Meanwhile moodi used political power to jail RaGa ..pehle freedom of speech gaya ab democracy! Aage aage dekho kya hota hai
Aur ek chiz batao , Microsoft certification ke liye toh Pearson vue se payment karte the woh bhi foreign transaction ho jayega kya
FM seems to be making sure that whatever Adani had lost in market capitalization, comes back to him through such stupid and nonsense laws/amendments.