It has been decided that any payments made by an individual using their overseas debit or credit cards up to Rs 7 lakh per financial year will be exempt from TCS.
CA Pratibha Goyal | May 19, 2023 |
No 20% TCS on international Debit or Credit cards Transactions upto Rs 7 lakh: CBDT
The application of Tax Collection at Source (TCS) to small transactions under the Liberalised Remittance Scheme (LRS) beginning on July 1, 2023, has drawn attention.
It has been decided that any payments made by an individual using their overseas debit or credit cards up to Rs 7 lakh per financial year will be exempt from the LRS limitations and, as a result, will not incur any TCS in order to prevent any procedural uncertainty.
The advantageous Treatment of TCS on health and education payments will continue.
Foreign Exchange Management (Current Account Transactions Rules), 2000, required amendments will be published separately.
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