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

[Paras Jain]

medical and education are exempted though

Yes bro it's a hugeeeee favour govt has done to us? What is someone't kid is a student in a foreign country and they want to send hard earned money to their kids? They still will deduct 20% from that. That mean parents will have to send 1/5th of an amount of a foreign currency which is already from 60 to 120 time indian rupee. How do they manage? Thing about a normal middleclass. Even if they can claim it back. What if they are just having enough to send? Govt doesn't care about a normal middleclass person. They only care about filling their pockets when they are overflowing.

 

[Paras Jain]

to force people to file itr
many non-salaried folks don't file itr

Why not just introduce this unwanted burden on non-salsried? Banks do have that info about who is salaried and who is not. And anyways transactions settle in a few days after the transaction. It is very much possible to implement this.

 

[thanix]

This is such a relief!

Now no one will protest for the 5% to 20%. Clever move as they just restored the previous status of 7L and got the increase they wanted 😔

 

[VGisHere]

Now no one will protest for the 5% to 20%. Clever move as they just restored the previous status of 7L and got the increase they wanted 😔

i believe that it is relief for all those who might be travelling or sending remittances less than INR 7L
also, correct me if I’m wrong, education and medical are still exempt, right?

INR 7L is already a huge amount, roughly 9k USD!

 

[thanix]

i believe that it is relief for all those who might be travelling or sending remittances less than INR 7L
also, correct me if I’m wrong, education and medical are still exempt, right?

INR 7L is already a huge amount, roughly 9k USD!

Of course, yes. I just highlighted the way it is done.

There is no exemption for medical or education purpose for remittance. If you take a loan, 0.5% is the concession TCS rate. If you use your own funds, it is 5% TCS rate. Both of the above is after 7L threshold.

It remains the same and no change. Others will have 20% TCS after this 7L threshold. That's all.

 

[yolofino]

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

Agree 100%

 

[sourpai]

I think it was a masterstroke by Government. This was the playbook -

1. Initially start with all cc transaction attracting TCS....Will cause lot of hue and cry in social media and news.
2. Wait for one day
3. Issue the change. The rules to change to 7L min threshold
4. Impact of 20% TCS will be much lower now, as people will focus on changes and thank government

Everybody now forgets the main issue of attracting TCS on credit card at all and that too 20%

Everyone is happy! Government is even happier