CARDBITRAGE
TF Legend
Debit cards and Forex cards were already subject to LRS. Now credit cards will also be treated the same way.
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Finance Bill 2023: FM says all credit cards payments for foreign tours to be considered under LRS
- Thread starter theglobalinvestor
- Start date
I think it only applies to
1) All transactions under LRS
2) CC transactions related to foreign tours (the way I've understood what has been written by the media: it would include foreign tour booking done from India as well as expenses incurred while on the said tours)
I don't think (and I hope I'm correct), regular non-travel related international transactions paid online via CC are going to be included. As I'm not an expert on this, I am by no means sure. So, I would suggest waiting for more clarifications from the ministry
How to find optimism here - The TCS will get added to your credit card spend and help you get milestone spends and points. Later after 1 year you will get a refund from IT department.
yolofino
TF Ace
I like your optimism. Sadly, I doubt that will be the case. There probably will be an extra line item added for TCS, just the way an extra line item is currently added for Foreign Currency Transaction charges done via Magnus. And you won't get points for this line item
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hemant ojha
TF Buzz
Will I get international reward point for this 20% transaction? and when I file ITR, this extra tax will be refunded back to my bank account?
panchabhut
TF Ace
Hawala txns will come back
So what options do we have left now? Debit / credit / forex card all will have TDS now, right ? So we use cash ?
yolofino
TF Ace
They have already increased thanks to the 2000 note and restrictions on cash payment above 2 lakhs. Ultimately, a common man is burdened with forms and compliance.
yolofino
TF Ace
Maybe govt will introduce Laxmi-coins 😆
this says foreign tours.. so direct international flight booking or hotel booking will not be impacted? only if i book thomas cook tour i will have to pay 20%tcs?
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
This will be a major blow! 20% TCS as per the proposal.
haha.. if i could have asked directly wouldn’t have asked here!! aapki itni pehchan hai toh poochke bata dena 🙂
anyways if u buy return foreign travel airline ticket from air india vistara etc it is charged in inr only
Wonderful, like if things weren't complicated enough. Weren't they already collecting info on credit cards to avoid tax evaders, now this. If this is specific to foreign tours it might be okay but if they'll pull TDS on all foreign transactions it's a big screw up.
Even getting cancer attracts taxes.
India might be the first country to pull such stunts as far as I am aware.
I really hope this backfires if it goes the way that most people here expect it to be.
If anything this will just make more people become tax evaders.
Even getting cancer attracts taxes.
India might be the first country to pull such stunts as far as I am aware.
I really hope this backfires if it goes the way that most people here expect it to be.
If anything this will just make more people become tax evaders.
I think the govt emboldened by recent successes in the international affairs front (with Russian oil purchases in the face of international sanctions etc) seeks to prop the rupee further by discouraging transactions in other currencies and pushing for any corporates wanting to do business in India to set up base in India and transact in INR.
krishc
TF Ace
medical and education are exempted though
Business folks will simply adjust the TCS in advance tax each quarter. Salaried folks have to declare this with employer if they have to adjust against the TDS. For which the banks have to provide TCS certificate. Good luck in handling government and private in this. Or wait till end of finance year and get it back after filing. All of this for spending your own money after getting TDS done. Pathetic government.
electroral bonds are opaque