Govt drops plans to levy TCS on overseas credit card spends
New Delhi, Jun 28: The government on Wednesday dropped plans to levy TCS on overseas payments made through international credit cards and said such expenses will be included in the Liberalised Remittance Scheme (LRS) of the RBI.
The Finance Ministry has also deferred by three months the implementation of a higher Tax Collected at Source (TCS) rate of 20 per cent on expenditures made under LRS and overseas tour packages till September 30. The new rates will come into effect from October 1.
In a statement, the ministry said to give adequate time to banks and card networks to put in place requisite IT-based solutions, the government has decided to postpone the implementation of its May 16, 2023, notification through which credit card expenses were brought under LRS.
The ministry also clarified that "transactions through international credit cards while being overseas would not be counted as LRS and hence would not be subject to TCS".
This means that the government has dropped plans to levy TCS on international credit card spending.
The Budget 2023-24 had raised TCS rates on LRS and foreign tour packages from 5 per cent to 20 per cent, effective July 1.
With Wednesday's announcement of deferment of a higher TCS rate, LRS spending above Rs 7 lakh would attract 20 per cent TCS from October 1.
On the purchase of overseas tour packages, a TCS of 5 per cent will be applicable on payments up to Rs 7 lakh. Above the threshold, 20 per cent would be levied from October 1.
Currently, overseas tour packages and LRS spending above Rs 7 lakh attract 5 per cent TCS.
Also, a TCS of 5 per cent is levied on expenses exceeding Rs 7 lakh towards medical treatment and education.
For those availing loans for overseas education, a lower TCS rate of 0.5 per cent would be levied above the Rs 7 lakh threshold.
"The increase in TCS rates; which were to come into effect from 1st July, 2023 shall now come into effect from 1st October, 2023," the ministry said.
It further said legislative amendments to give effect to changes will be taken up in due course.
The necessary changes to the Rules (Foreign Exchange Management (Current Account Transactions Rules), 2000) will be issued separately. Also, Frequently Asked Questions (FAQs) shall be issued to clarify various practical issues, the ministry added.
Nangia Andersen LLP Partner Sandeep Jhunjhunwala said mentioning the unpreparedness of the IT infrastructure to deal with new TCS provisions on credit card spending, banks and financial institutions had made representations to the government to defer the LRS-TCS implementation timelines.
"Increase of TCS rates on LRS for purposes other than for education and medical treatment had been concerning taxpayers ever since the Finance Bill 2023 was tabled," Jhunjhunwala said.
Let the Truth be known. If you read VB and like VB, please be a VB Supporter and Help us deliver the Truth to one and all.
Bearys education announces ‘campus connect & talent hunt 2026,' offers up to 100% scholarships
Mangaluru: Bearys Education has announced the launch of its “Campus Connect & Talent Hunt 2026,” scheduled to be held on April 11 at the Bearys Knowledge Campus near Mangalore University in Innoli.
The initiative, aimed at promoting academic excellence and student empowerment, will offer scholarships of up to 100 percent on tuition fees for meritorious candidates.
The programme seeks to identify and support students aspiring to pursue Pre-University Course (PUC), degree, engineering and architecture programmes.
The event is open to students from SSLC (Class 10), PUC (Class 12), Diploma and ITI streams, along with their parents. Organisers said the day-long programme will focus on guidance, engagement and opportunities for students planning their academic future.
A Talent Hunt Examination will be conducted on April 11 at 9.30 am, with eligibility extended to students completing SSLC and PUC in 2026. Based on their performance, candidates will be considered for scholarships of up to 100 per cent.
The event will also feature a career guidance and counselling session led by Ameen-E-Mudassar, CEO of CIGMA. In addition, a technical and science expo showcasing student-led innovations, along with a food festival, will be organised as part of the programme.
Organisers stated that the initiative reflects the institution’s focus on quality education, personality development and integrity, while marking over 120 years of educational service.
Interested participants can register before April 8 by scanning the QR code provided in the official announcement (provided below) or by contacting 89704 96949, 81239 04351, or 99000 66888.
