TCS ON FOREIGN REMITTANCE
ITR filing: Credit card and forex spend reported separately by banks in AIS, know the impact and what you can do
Income tax return: While filing your ITR make a note that banks are now reporting total forex spends as a separate category in addition to total credit card spends. According to Gopal Bohra, Partner, N.A. Shah Associates, "Transactions through international credit cards are currently exempt from TCS, and accordingly, banks do not collect TCS. However, banks report all remittances under LRS through TCS filing, irrespective of whether TCS is collected or not."
Travel dominates forex spending abroad: RBI data
Outward remittances from India under the liberalised remittance scheme fell by 2% year on year. Travel was the largest chunk of foreign currency outflows in April, with maintenance of close relatives being the second largest reason for remittances. Indians spent $31.7 billion overseas under the LRS in the fiscal ended March 2024.
Latest bank charges to send money abroad: SBI, HDFC Bank, ICICI Bank, Axis Bank, IDFC FIRST Bank, DBS Bank India
It means that as per the RBI rules, one can transfer of money up to USD 250,000 per calendar year for defined purposes. However, fees per transaction differ depending on the bank. Here is a comparison of the latest top banks’ charges for sending money abroad.
Banks get ready to count int'l credit card spend in liberalised remittance scheme
Under the belief that reissuing the specific notification may not go against the model code of conduct, many banks are preparing to integrate their systems with the RBI’s for capturing the card spend information of individual customers during personal foreign tours.
TCS rates codified to 20%; there’s a PLI for R&D and innovation: Rohinton Sidhwa, Deloitte India
Deloitte India partner Rohinton Sidhwa discusses the changes in the TCS rates imposed on foreign exchange remittances. The TCS rate has been aligned to 20% as per cicular number 10 of 2023. There are also potential changes in the calculation of agricultural income. The finance minister mentioned a PLI for R&D and innovation with a funding of Rs 1 lakh crore. There is also a focus on credit to the tourism sector. Sidhwa believes that the revenue growth assumptions are conservative and expects an increase in tax collection due to rising incomes and an expanding tax net.
Interim Budget seals India's plan for higher taxes on your foreign holidays
The Interim Budget 2024 includes the inclusion of increased Tax Collected at Source (TCS) rates on foreign remittances into the Income Tax Act as an amendment. The adjustment is awaiting parliamentary approval and will affect foreign expenditures exceeding Rs 7 lakh annually per individual.
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Debit card or credit card: Which one should you use on international trip to save on forex, ATM charges, TCS?
Debit card vs credit card: The first thing to keep in mind is that using a debit card means spending the money in your account. Credit cards, on the other hand, are handy if you face a shortage of funds while travelling abroad. Is it better to use a debit card to avoid overspending or swipe a credit card to stay away from TCS? What are the charges you need to keep in mind while using a debit or credit card abroad? Read on to find out before boarding that flight.
New 20% TCS rule from October 1, 2023: 4 tips to bring down TCS to zero during your next international trip
20% TCS on overseas tour package: When you book, offline or online, overseas tour packages, offline or online, of more than Rs 7 lakh in a financial year, you have to pay TCS at 20% from October 1, 2023. Is there any way to reduce this additional upfront cost? Here are a few tips which will help you lower your TCS burden while travelling abroad. Read on to find out.
New TCS rules have kicked in: Here's what gets costlier and what remains same
Starting October 1, 2023, new tax collection at source (TCS) rates will affect various financial transactions, such as international travel, investments in foreign assets, and educational expenses abroad. Under the Liberalised Remittance Scheme (LRS), individuals can remit up to $250,000 in a financial year.
New 20% TCS from October 1, 2023: Be ready for a cash crunch if you invest in international stocks, cryptocurrency; how to reduce TCS impact
TCS on foreign remittances from October 1, 2023: The Budget 2023 hiked TCS on foreign remittances of more than Rs 7 lakh through the LRS to 20% for investments in overseas assets, real estate, bonds, foreign company stocks, etc. The higher rate comes into effect on October 1, 2023. If you directly invest in international stocks, you should know how the new TCS rule is going to impact your investment from tomorrow.
How to cut your TCS hit if you invest in foreign assets
Starting from October 1, 2023, Indian residents investing in foreign assets will be subject to a Tax Collected at Source (TCS) of 20% on foreign remittances exceeding Rs 7 lakh. This change in tax regulations will impact those investing in international stocks or planning to acquire real estate abroad.
300% hike in TCS from July 1, 2023: How it will impact foreign investments, international trips, credit card spends abroad
Get ready to shell out more from next month as Budget 2023 has increased Tax Collection at Source (TCS) on foreign remittance through the Liberalised Remittance Scheme (LRS) to 20 per cent from the existing 5 per cent, except in certain cases. As it is going to impact your budget significantly, you must first understand how much TCS will be levied on which transaction. ET Wealth explains
9 common money transactions that you can still do with inoperative PAN card
Your PAN will become inoperative if it is not linked to Aadhaar by June 30, 2023. Though inoperative PAN will make it difficult for an individual to do certain transactions. However, there are certain transactions that will continue with inoperative PAN albeit with higher TDS and TCS deduction on the money transactions.
What are the new TCS rates for foreign remittances applicable from October 1, 2023
Here is the rate you will be charged for foreign remittances under LRS below and above Rs.7 lakh.
Sending money abroad for education? Watch out for these errors to avoid 20% TCS
The higher rate of TCS will not apply to education expenses incurred abroad. But parents must be careful about the fine details of TCS while remitting money for overseas education. In case of any carelessness, they would end up paying a hefty amount of TCS on their spending. Here the things to keep in mind while sending money abroad for education.
No TCS on foreign remittances of up to Rs 7 lakh, credit card spending overseas; higher rates to kick in from October 1
TCS on foreign remittances: There will be no tax collection at source (TCS) on foreign remittances of up to Rs 7 lakh per financial year, said Ministry of Finance. It has clarified that transactions done through international credit cards while being overseas would not be counted as LRS transactions and hence not subject to TCS. For overseas tour package, a TCS of 5 per cent will be levied if the amount is up to Rs 7 Lakh. The higher rate of TCS will come into effect from October 1, 2023.
Govt clarifies how TCS will be applicable on flight tickets, hotel bookings during international trips, hostel expenses, other foreign remittances
Earlier this week, the ministry said that there will be TCS on foreign remittances of up to Rs 7 lakh per financial year. Further, it also added that the increased rates TCS will come into effect from October 1, 2023
Higher EPS pension, TCS on foreign remittances, SBI special FDs: 4 deadlines that have been extended; check new dates
Here are the deadlines that have been extended and their new dates. Individuals should make sure to finish the tasks to avoid any last moment issues.
Banks say systems are not yet ready for new TCS regime
Indian banks are claiming that they do not yet have the requisite software to implement new rules relating to tax collection at source for foreign debit and credit card transactions, due to start from July 1. Rules issued by the Central Board of Direct Taxes last month require foreign card spending above INR700,000 ($10,874) to be counted towards the Liberalised Remittance Scheme and taxed at 20%. fn
TCS on foreign remittance transactions: 5 things to know
TCS will be 5% for amounts exceeding Rs 7 lakh for education and medical treatment abroad.
Sending money abroad for education? Pay 20% TCS from July 1 if you don't do this
Budget 2023 raised the Tax Collection at Source (TCS) rate for foreign remittances under the Liberalised Remittance Scheme (LRS) from 5 per cent to 20 per cent for select transactions. The new rates of TCS will kick in from July 1, 2023. Let's understand how the new TCS rule will impact students who are already studying in foreign universities and schools or are planning to study abroad soon.
You have to pay more for foreign tour packages from July 1, 2023: How to book smartly to save better
If you are buying a foreign tour package from a travel agent, you have to pay a tax collection at source (TCS) of 20% from July 1, 2023. Budget 2023 has hiked the TCS rate for foreign remittances under the LRS from 5% to 20% (except for education and medical purposes). With this sharp rise in TCS, foreign trips are likely to become costlier soon.
Overseas travel boom takes Indians' foreign currency spends to record highs
Overseas travel after the pandemic has risen to record highs and so has the foreign currency spends by Indians. The overall foreign currency spends by Indians rose by $7.5 billion to a record high of $27.1 billion in FY23. The Finance Ministry recently announced that no tax will be charged on overseas spending of up to Rs 7 lakh in a year using debit or credit as it looked to douse backlash from its earlier decision of levying TCS on all spending.
No TCS on overseas spending up to Rs 7 lakh per year by credit or debit cards: GOI
The Government of India on Friday has announced that individuals making payments using their international debit or credit cards, up to Rs 7 lakhs per financial year, will be exempted from the Liberalized Remittance Scheme (LRS) limits and will not be subject to Tax Collected at Source (TCS). Furthermore, the existing beneficial TCS treatment for education and health payments will be maintained.
What is LRS and which transactions come under it? Govt's FAQs on 20% TCS on international credit card spends
On May 16, 2023, the Ministry of Finance issued a notification mentioning to omit rule 7 of the Foreign Exchange Management (Current Account Transactions) Rules, 2000, with immediate effect. Now the Ministry of Finance released Part B of Frequently Asked Questions (FAQs) on May 18, mentioning the details of foreign remittance through the Liberalised Remittance Scheme (LRS).
Credit card spends in foreign currency to attract 20% TCS
The Finance Ministry has clarified that foreign currency payments such as digital subscriptions to publications or goods bought on foreign ecommerce sites through international credit cards will count towards an individual's Liberalized Remittance Scheme (LRS) account and attract 20% tax collected at source (TCS). However, if these purchases are made in Indian rupees, they will not be counted against LRS and face any TCS. This change is intended to bring parity between remittances and overseas spending using debit and credit
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