No 20% TCS on international Debit or Credit cards Transactions upto Rs 7 lakh: CBDT:

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.

20% TCS on international Debit or Credit cards

CA Pratibha Goyal

May 19, 2023

Last update on 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.

No TCS upto Rs 7 lakh

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.

About Author

CA Pratibha Goyal

Co Founder

CA Pratibha Goyal is Chartered Accountant qualified in 2016, is a Member of The Institute of Chartered Accountants of India having wide experience in the field of Auditing, Taxation, ROC, GST and Secretarial matters etc. She has written over a thousand articles & has made several videos on topics related to Auditing & Taxation. As a Speaker she has delivered various sessions on various branches of NIRC of ICAI.