FYI: TCS on LRS transactions for debit card transactions abroad...

[theglobalinvestor]

Got some clarity on this from SBM Bank.

Dear Customer,
In accordance with the provisions of section 206C of the Income-tax Act, 1961, all authorized dealers are required to collect 5% Tax Collection at Source (TCS) for remittance transactions under the Liberalized Remittance Scheme (LRS) aggregating to Rs. 7 lacs or more in a financial year. These transactions include transactions initiated through SBM Bank Debit Cards or through any other channel(s) of SBM Bank.
Please note that for international debit card transactions under Liberalised Remittance Scheme (LRS), Tax Collected at Source (TCS) will be deducted online at the time of the transaction. Post evaluation of LRS utilization the next day, refund, if any, will be posted to the customer’s account linked to debit card within 7 days.

5% TCS until June 30th and 20% TCS from July 1st onwards.

 

[iNokia]

Koi inko batao international transactions band hai inke card par.

 

[xiddy]

So, you'll get a refund the next day if you've not crossed the 7L limit? Even after July 1st?

 

[0xfallup]

Got some clarity on this from SBM Bank.



5% TCS until June 30th and 20% TCS from July 1st onwards.

opened a month ago only..now have to close it if they are going to deduct tcs on every transaction even if i dont cross a threshold of 7lacs

 

[iNokia]

opened a month ago only..now have to close it if they are going to deduct tcs on every transaction even if i dont cross a threshold of 7lacs

Afaik ban on international transactions happened in January. So were you able to use it during last month?

 

[theglobalinvestor]

So, you'll get a refund the next day if you've not crossed the 7L limit? Even after July 1st?

Yes credited within 7 days. No, after July 1st its 20% TCS from the first rupee. No more 7L threshold as per the new budget/finance bill from July 1st.