• Hey there! Welcome to TFC! View fewer ads on the website just by signing up on TF Community.

Finance Bill 2023: FM says all credit cards payments for foreign tours to be considered under LRS

Apply For Lifetime Free IDFC First Credit Card
theglobalinvestor said:
www.cnbctv18.com

Finance Bill 2023: FM says all credit card payments for foreign tours to be considered under LRS - CNBC TV18

In her speech Nirmala Sitharaman mentioned that the RBI is being requested to look into bringing credit card payments for foreign tours within the ambit of LRS and tax collection at source thereon.
www.cnbctv18.com www.cnbctv18.com

This will be a major blow! 20% TCS as per the proposal.
Click to expand...
this will be very difficult to implement
and will undermine the whole purpose of a "credit" card
 
Please explain Like I'm 5.

Can we claim this back while filing taxes? Who will collect TCS and pay the goverment so that it shows up in income tax portal?
 
CMG said:
Please explain Like I'm 5.

Can we claim this back while filing taxes? Who will collect TCS and pay the goverment so that it shows up in income tax portal?
Click to expand...

Yes, you can claim it back when filing your tax returns, if you have paid extra taxes
The Bank (or for the new rule, the Credit Card issuer most probably) through which you make the payment will collect it and deposit it with the government so that it shows up in your 26AS
 
This was expected. However the removal of indexation benefits and no LTCG tax on debt funds was unexpected
 
Copycat said:
Yes, you can claim it back when filing your tax returns, if you have paid extra taxes
The Bank (or for the new rule, the Credit Card issuer most probably) through which you make the payment will collect it and deposit it with the government so that it shows up in your 26AS
Click to expand...
If I am on international travel and use my credit card there, is it subject to TCS? From first dollar? And it will be done by card issuer in statement? I have to get it back during IT filing. Is it the case?
 
krishc said:
Debit is already under LRS
CC is outside yet
Forex not sure
Click to expand...
I read that there was a exemption of 7L for debit card earlier. Now all gone gone. And this is from first dollar onwards. One Twitter user has put forex loads is also covered.
 
What I am not clear is whether it is only on travel to foreign countries or any international transaction from here. I have subscribed to a digital magazine from abroad and use credit card each month. Now will there be 20% TCS applicable on it?
 
You must log in or register to reply here.
Back
Top