Govt puts off TCS on overseas spends for 3 months

June 28, 2023 22:18

The government on Wednesday said that overseas spending using international credit cards will not be included under the Liberalised Remittance Scheme and hence, would not attract TCS.

Also, the implementation of a higher rate of tax collected at source of 20 per cent on overseas remittances under LRS, like tour expenses, has been deferred by three months and will come into effect from October 1.

However, Credit card spending overseas will not attract TCS from October 1.

The higher TCS rate will be applicable only when the LRS payments exceed the threshold of Rs 7 lakh.

The government, in Finance Bill 2023, had increased the rate of TCS from 5 per cent to 20 per cent for remittance under LRS as well as for the purchase of overseas tour programme packages and removed the threshold of Rs 7 lakh for triggering TCS on LRS.

These two changes were not applicable when the remittance is for education or medical purpose.

These amendments were to take effect from July 1, 2023. -- PTI

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