TCS will not deduct on spending up to Rs 7 lakh abroad from credit, debit cards
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Amid criticism from various quarters, the finance ministry in a statement said the move is aimed at removing procedural ambiguities with respect to the Reserve Bank’s Liberalized Remittance Scheme (LRS) and TCS. Earlier this week, the ministry had decided to bring the expenses incurred through international credit cards under the ambit of LRS.
The government on Friday said that tax collected at source (TCS) will not be deducted on foreign spending up to Rs 7 lakh in a financial year through debit or credit cards. Amid criticism from various quarters, the finance ministry in a statement said the move is aimed at removing procedural ambiguities with respect to the Reserve Bank’s Liberalized Remittance Scheme (LRS) and TCS. Earlier this week, the ministry had decided to bring the expenses incurred through international credit cards under the ambit of LRS.
As a result, TCS of 20 per cent was imposed on him. Experts and concerned parties had expressed sharp reaction to this. The ministry said, “In order to remove procedural ambiguity, it has been decided that expenditure up to Rs 7 lakh in a financial year abroad through international debit or credit cards will be excluded from the Liberalized Remittance Scheme and that But TCS will not be deducted. At present, TCS is not deducted on expenses up to Rs 7 lakh incurred on medical treatment and studies abroad. TCS is deducted at the rate of five per cent on such expenditure. The ministry said that the existing TCS facility for payments related to education and health will continue.
Disclaimer:IndiaTheNews has not edited this news. This news has been published from PTI-language feed.
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