{"id":243249,"date":"2023-05-20T19:27:12","date_gmt":"2023-05-20T13:57:12","guid":{"rendered":"https:\/\/blog.forumias.com\/?p=243249"},"modified":"2023-05-20T19:27:12","modified_gmt":"2023-05-20T13:57:12","slug":"tax-waived-on-annual-forex-spends-up-to-%e2%82%b97-lakh-finmin","status":"publish","type":"post","link":"https:\/\/forumias.com\/blog\/tax-waived-on-annual-forex-spends-up-to-%e2%82%b97-lakh-finmin\/","title":{"rendered":"Tax waived on annual forex spends up to \u20b97 lakh: FinMin"},"content":{"rendered":"\n

Source: <\/b>The post is based on the article<\/span> \u201cTax waived on annual forex spends up to \u20b97 lakh: FinMin\u201d <\/b>published in<\/span> The Hindu <\/b>on 20th May 2023<\/b><\/p>\n

What is the News?<\/b><\/h2>\n

The Finance Ministry has clarified that payments using international debit or credit cards up to Rs 7 lakh per financial year will be excluded from the Liberalised Remittance Scheme (LRS) limits and, therefore this will not attract any Tax Collected at Source(TCS).<\/span><\/p>\n

What is the issue?<\/b><\/h2>\n
\"Tax
Source: Money Control<\/figcaption><\/figure>\n

Recently, the Government amended rules under the Foreign Exchange Management Act, bringing in international credit card spending outside India under the Liberalised Remittance Scheme (LRS).<\/span><\/p>\n

As a consequence, the spending by international credit cards will attract a higher rate of TCS at 20 per cent effective July 1,2023.<\/span><\/p>\n

At present, a TCS levy of 5% will come into effect on such transactions till July 1 (except for medical and education-linked sectors), which would then increase to 20 per cent after July 1.<\/span><\/p>\n

Prior to this, the usage of an international credit card to make payments towards meeting expenses abroad was not covered under the LRS.<\/span><\/p>\n

This move has raised <\/span>concerns about the applicability of TCS to small transactions under the Liberalised Remittance Scheme(LRS).<\/span><\/p>\n

What has the government done to address concerns?<\/b><\/h2>\n

The government has clarified that payments using international debit or credit cards up to Rs 7 lakh per financial year will be excluded from the Liberalised Remittance Scheme (LRS) limits and, therefore this will not attract any Tax Collected at Source(TCS).<\/span><\/p>\n

Moreover, e<\/span>xisting beneficial TCS treatment for education and health will also continue.<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"

Source: The post is based on the article \u201cTax waived on annual forex spends up to \u20b97 lakh: FinMin\u201d published in The Hindu on 20th May 2023 What is the News? The Finance Ministry has clarified that payments using international debit or credit cards up to Rs 7 lakh per financial year will be excluded… Continue reading Tax waived on annual forex spends up to \u20b97 lakh: FinMin<\/span><\/a><\/p>\n","protected":false},"author":10317,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[1566,3127,9],"tags":[10498],"class_list":["post-243249","post","type-post","status-publish","format-standard","hentry","category-daily-factly-articles","category-economy","category-public","tag-the-hindu","entry"],"jetpack_featured_media_url":"","views":"","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/243249","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/users\/10317"}],"replies":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/comments?post=243249"}],"version-history":[{"count":0,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/243249\/revisions"}],"wp:attachment":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/media?parent=243249"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/categories?post=243249"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/tags?post=243249"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}