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20% TCS on all international transactions done using a credit card
- Thread starter TechnoFino
- Start date
I need to pay significant payment for education fees for an international course in Canada.
Which option is best for minimum remittance fees cost and where credit cards can be used
Which option is best for minimum remittance fees cost and where credit cards can be used
CARDBITRAGE
TF Legend
The cheapest would be through Forex agents( BookMyForex, extravelmoney) but they won't accept card payments. If the university has a provision to make payments using cards, check for convenience fees and see if it makes sense to do that. If the convenience fee is nominal, this would be the best option.
mohit3780
TF Buzz
Sorry for my silly question. And Please forgive me if I'm asking something wrong.
I have an IDFC Wealth Credit card which I have already used for about 6L this Financial Year for International Transactions. I know after 7L 20% TCS will be applicable.
Now the question is very noob. Can I use my Wife's IDFC CC which is issued as an ADDON CC to my current IDFC CC for another 7L limit? Or this addon card will be considered the same as my current IDFC CC?
Secondly, this 7L limit is applicable per Credit Card (One CC = 7L limit, Two CC = 14L limit and so on) OR is applicable on one Bank Account OR for one particular individual? Means Can I use one IDFC CC & AXIS CC & ICICI CC for a total of 21L limit to avoid 20% TCS ...correct?
Please correct me if I am wrong anywhere.
I have an IDFC Wealth Credit card which I have already used for about 6L this Financial Year for International Transactions. I know after 7L 20% TCS will be applicable.
Now the question is very noob. Can I use my Wife's IDFC CC which is issued as an ADDON CC to my current IDFC CC for another 7L limit? Or this addon card will be considered the same as my current IDFC CC?
Secondly, this 7L limit is applicable per Credit Card (One CC = 7L limit, Two CC = 14L limit and so on) OR is applicable on one Bank Account OR for one particular individual? Means Can I use one IDFC CC & AXIS CC & ICICI CC for a total of 21L limit to avoid 20% TCS ...correct?
Please correct me if I am wrong anywhere.
Last edited:
roshancc
TF Select
Add On Card is just an extension of the Primary Card .
Didn't you already ask the same question here?
Post in thread '20% TCS on all international transactions done using a credit card' https://www.technofino.in/community...ns-done-using-a-credit-card.12514/post-320664
Someone has already answered, so what more assurance do you need? 😁
Post in thread '20% TCS on all international transactions done using a credit card' https://www.technofino.in/community...ns-done-using-a-credit-card.12514/post-320664
Someone has already answered, so what more assurance do you need? 😁
D₹V
TF Pioneer
Wow 😳 peru.
mohit3780
TF Buzz
No Sir. No more assurance is needed for the first query. Please forgive me if I'm making it Spam.
Just asking to suggest for the second query mentioned below --
""this 7L limit is applicable per Credit Card (One CC = 7L limit, Two CC = 14L limit and so on) OR is applicable on one Bank Account OR for one particular individual? Means Can I use one IDFC CC & AXIS CC & ICICI CC for a total of 21L limit to avoid 20% TCS ...correct?""
No need to apologize 🙏, everything's good. 👍
The reason we ask individuals not to post the same query in multiple threads is because this can lead to additional confusion. By staying within a single thread, if someone provides incorrect information, others can step in to correct it.
mohit3780
TF Buzz
The 20% rule is on hold as of now.
So there is no change on the existing rule . CC spends are not included for tcs
mohit3780
TF Buzz
Noted...Thanks Sir
Intention for Government is to be at PAN level. So a person can have only 7L exemption across channels or banks.
But this needs near real time data sharing, consolidation and validation which probably is being built. This may be the reason that it is put on hold.
In my personal opinion, this is a vanity project to burn tax payer money unless Government fears flight of capital from individuals.
CARDBITRAGE
TF Legend
As of now, there is no TCS levied on CC transactions. In future, TCS will be levied after crossing 7L in forex spends, irrespective of the mode of currency. So you can't get away by using multiple cards. The data will be made available to the institutions using your pan. They will charge TCS first to your account, and reverse the same if the total transactions fall under the 7L threshold.
mohit3780
TF Buzz
So the transactions done now will not come under 20% TS till Govt comes with some concrete announcement on 1st Oct.
Actually, my main concern is I have spent almost 15L in total on 3 different Credit Cards this month for paying Univeristy Fees and Health Insurance mandatory for admission. So I'm confused about whether Bank will charge 20% on my Monthly CC statement or not.
If Yes then I m f***ed as I need to pay 20% on 8L (above the 7L limit).
That's why Im enquiring so much.
I don't think they'll charge backdated transactions. It would be a legal and technical mess.
CARDBITRAGE
TF Legend
I don't think they will charge TCS on forex transactions done through CC prior to Oct 1st(if at all they meet the deadline). I guess we'll have to wait and watch.
Besides, since you have done a majority of your fx spends towards education, you should be taxed at 5% and not 20%. But again, it's too early to tell as it's the first time they are implementing this.
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