The Govt announced that credit & debit card spending up to Rs 7 lakh in a financial year won't attract the prescribed tax collected at source (TCS), a move that is expected to provide relief to citizens worried about the new rules that kick in from July.
Acknowledging the concerns over the new rules, the finance ministry said that expenditures up to Rs 7 lakh will be excluded from the Liberalised Remittance Scheme. This is in line with the threshold for health & education related remittances & the move on overseas travel is in line with it.
It said that "Existing beneficial TCS treatment for education & health payments will also continue".
The TCS on remittances for medical treatment & education (from personal source) is currently pegged at 5%, while those who have availed of a bank loan for overseas education face a 0.5% TCS.
The TCS on some transactions, such as overseas travel, was increased fourfold to 20% as several people did not seek a refund by not filing returns. The Govt is hoping that higher TCS will force them to seek credit for the tax that has been collected at the time of the transaction.
The government's latest announcement came amid widespread protests against the decision to implement TCS on payments made by international credit cards for things like overseas travel. Those going on vacation & tour operators are complaining of adverse impact as those availing of a package would have had to cough up the amount upfront & adjust it later, an exercise that could take up to 15 months.
(Only the headline and picture of this report may have been reworked by the LatestLaws staff; the rest of the content is auto-generated from a syndicated feed.)
Source Link
Picture Source : https://www.needpix.com/photo/download/316642/taxes-tax-office-tax-return-form-income-tax-return-income-tax-wealth-finance-tax-evasion
