It’s evergreen
Only that their volumes are less nowadays
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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
Only that their volumes are less nowadays
Maybe try trying to target people with black money who do international booking using other people bank account or cards and then pay them in cash. But why the big fish are not targeted like NGOS, charities and rich farmers.
krishc
TF Ace
to force people to file itr
many non-salaried folks don't file itr
True but they could kept TCS @1% like cars
krishc
TF Ace
If an individual spends 3L, they would incur a TCS of 1%, which amounts to 3,000. This would be irrelevant for those who do not intend to file their ITR. However, if the TCS is 20%, the amount would be 60,000, which would motivate individuals to file their ITR in order to claim a refund.
Several reasons: One or more may apply
1) To force people to file their returns (to get a refund)
2) To collect money from the public for which the IT department does not need to pay interest (interest is paid only from the April following the end of the financial year)
3) To conserve foreign exchange. This is because you will need to pay extra (temporarily) so you will be more open to the idea of an Indian provider who may be marginally more expensive than the foreign provider
4) To make Indian providers more competitive (same explanation as 3)
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TCS for cars is 1% for ITR filers. If not, it is 5%. Why can't the same be done for international travel too?
krishc
TF Ace
For NR, TCS wasn't there earlier (CBDT had a notification last year). I hope it's going to be the same now (https://incometaxindia.gov.in/communications/notification/notification-20-2022.pdf).
For Residents, this might be huge since if you have to spend 1L, you need to make sure that you have 20K extra to be loaned to the govt till you get back after filing ITR. The interest for taxes in India is from when you file your taxes until you get the refund. So indirectly, you are investing with the government for zero returns till at least the end of April. So for someone who spends an amount of 2L outside India (during the summer season) is invested with the government for 0% for 9 months. In short, the government gets a free loan—economics at its best. Yeah, our FM is an econ major. I really had to check online.
For credit card holders who used to put money on personal cards while on a biz trip, and get it expensed from the company, many will be forced to use company credit cards. Why would one want to give the government 20% of the cost as a free loan?
For Residents, this might be huge since if you have to spend 1L, you need to make sure that you have 20K extra to be loaned to the govt till you get back after filing ITR. The interest for taxes in India is from when you file your taxes until you get the refund. So indirectly, you are investing with the government for zero returns till at least the end of April. So for someone who spends an amount of 2L outside India (during the summer season) is invested with the government for 0% for 9 months. In short, the government gets a free loan—economics at its best. Yeah, our FM is an econ major. I really had to check online.
For credit card holders who used to put money on personal cards while on a biz trip, and get it expensed from the company, many will be forced to use company credit cards. Why would one want to give the government 20% of the cost as a free loan?
I agree with the interest free loan. I had posted the same a few posts earlier
Slight correction to what you said: The interest in case of TCS refunds is from April 1st onwards, not from the date when you file your taxes
You also hit the nail on the head with your other observation wrt company cards
they are all being targeted, unless they are affiliated with BJP (and most even in that case)
the purpose is not filing of returns; they already get all the data they need from credit card companies
the purpose is to ensure you send as little dollar currency outside India as possible - India has a huge trade deficit and with the coming golbal recession it will get worse
the current account deficit will grow once inward remittances and investments both take a hit
Govt clarifies payments abroad for up to ₹7 lakh will not be taxed
20% TCS rule update: No tax for international transactions up to ₹7 lakh through debit cards or credit cards
This is such a relief!
The government issued a clarification on Friday stating that a 20% Tax Collection at Source (TCS) will be applicable only to overseas credit card transactions exceeding ₹7 Lakh.
So this implies, one can still use debit/credit cards up to limit of 7L. And I hope that not only includes Ecom transactions but also POS!
So this implies, one can still use debit/credit cards up to limit of 7L. And I hope that not only includes Ecom transactions but also POS!
Paras Jain
TF Premier
Brother the only people who dont pay taxes are wealthy businessmen. Everyone especially normal middleclass pays most amount of taxes. If government takes a step it is not always justified and logical. What if there is too much corruption inside govt and politicians that the more than abundant tax amount reduces to inadequate because of those greedy few people inside govt and the whole govt system? Think properly. There is no way for a salaried individual to prevent taxes anyways.
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Paras Jain
TF Premier
They were not before 3-4 years 🙂. The govt has left nothing for the common people. Common man does years of hardwork and these people take it as if it is their birthright. They are just polluted corrupt politicians whos hunger never stops for looting more from common public. We are nothing to them. Their mindset is "itne paise ka ye log kya hi karenge. Inse lekar apne foreign bank account me daalo"
Paras Jain
TF Premier
Bhakt log hai bhai ye. Sarkaar ko justify karne ke liye kuch bhi keha sakte hain bina kisi saboot ke. Inko haq dia gaya hai inke supreme leader ne jhuth failaane ka. Inko nahi dikhta ki ye saara paisa in ghatia politicians ke pocket ya foreign accounts me jata hai. Desh ya logon ke liye istemaal nahi hota
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