TCS ON INTERNATIONAL TRANSACTION
Zepto raises $340 million; HCLTech’s growth plans
Happy Friday! Zepto has announced another $340 million fundraise, valuing it at $5 billion. More details on this and other updates in today’s ETtech Morning Dispatch.
Outward remittances exceeding ₹6 lakh come under I-T scanner
The move will help the government to identify cases where the remittance was sent but was not reported by the taxpayer in their filling, the official said. "The whole exercise will curb tax evasion and ensure that legitimate remittances are facilitated while preventing abuse of relaxations in foreign remittance reporting," the official added.
Delhivery CEO on q-commerce & more; Rapido’s rising GMV
Happy Friday! Delhivery’s CEO Sahil Barua spoke exclusively to ETtech about quick commerce and more. This and other big stories in today’s ETtech Morning Dispatch.
NPCI's decision to block C-Edge from retail payments system averted a systemic impact: RBI Governor
RBI Governor Shaktikanta Das praised NPCI's decision to temporarily block C-Edge Technologies from the retail payments system to prevent systemic impact after a ransomware attack. The incident, affecting 300 small lenders, was isolated by NPCI's action, minimizing broader disruptions. C-Edge is conducting a forensic review of its systems.
Luxury goods above Rs 10 lakh like Louis Vuitton handbag, Bulgari jewellery etc. to attract TCS from January 1, 2025
TCS on luxury goods, Budget 2024: The budget documents have proposed the levying of TCS (tax collected at source) on notified luxury goods from January 1, 2025. The list of luxury goods that will attract TCS will be notified by the central government. Currently, TCS is applicable on foreign remittances, foreign travel, motor vehicle etc.
TCS paid on foreign remittances, purchase of car can be used to lower TDS on salary
TCS on Foreign remittances: Budget 2023 raised TCS on most foreign remittances under LRS to 20%. The initial implementation was met with criticism and a delay. Now, TCS applies only if remittances exceed Rs 7 lakh per year, with exceptions for education (0.5% or 5% TCS) and medical treatment (5% TCS). Travel package remittances up to Rs 7 lakh attract 5% TCS, with 20% above that. International credit cards are exempt from LRS and TCS.
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Budget 2024: Higher TCS of 20% on certain foreign remittances via LRS can be reduced to 5%
TCS rate of 20% is high and can create liquidity challenges for individuals who rely on regular remittances for personal or business needs. Lowering it to 5% can be a big relief for these people.
All that SaaS; AI woes
Happy Friday! Goldman Sachs is likely to increase its stake in SaaS startup MoEngage. This and more in today’s ETtech Morning Dispatch.
ITR filing: Credit card and forex spend reported separately by banks in AIS, know the impact and what you can do
Income tax return: While filing your ITR make a note that banks are now reporting total forex spends as a separate category in addition to total credit card spends. According to Gopal Bohra, Partner, N.A. Shah Associates, "Transactions through international credit cards are currently exempt from TCS, and accordingly, banks do not collect TCS. However, banks report all remittances under LRS through TCS filing, irrespective of whether TCS is collected or not."
Banks seek one more month to comply with international card spend rule
Indian lenders are seeking a one-month extension from the government to comply with the Liberalised Remittance Scheme (LRS) for international credit card spends. The scheme allows Indian residents to remit up to $250,000 abroad in a financial year for permissible purposes such as education, travel, and investment. Last year, the government announced that forex transactions through credit cards would be covered under the scheme and charged 20% tax collected at source (TCS) beyond the threshold of ₹7 lakh per fiscal.
Wipro promotes veterans; Paytm & Nykaa Q4 financials
Happy Thursday! Wipro CEO Srinivas Pallia is betting on internal talent to propel growth. This and more in today’s ETtech Morning Dispatch.
RuPay debit, credit card: This RuPay card will get you up to Rs 3,000 cashback in every transaction in these countries
RuPay-JCB debit and credit card customers can now get a 25% cashback on in-store purchases in eight countries. This is a limited-period offer. When can you avail of this offer? On which transactions this cashback offer will be available? Who will be eligible for this cashback? All your questions are answered.
Forex card update: You can instantly load your forex card through this app during international trips; check details
Facing a cash crunch while travelling? BookMyForex app offers a solution — you can instantly load your forex card. Simply log in, select your BookMyForex card, and request a real-time top-up with your desired foreign currency. The process is quick and convenient, ensuring you have access to money whenever you need it during your international trip.
Banks get ready to count int'l credit card spend in liberalised remittance scheme
Under the belief that reissuing the specific notification may not go against the model code of conduct, many banks are preparing to integrate their systems with the RBI’s for capturing the card spend information of individual customers during personal foreign tours.
Will Budget 2024 reduce 20% TCS for taxpayers, levy TCS on credit card forex payments?
Budget 2024: The industry wants the Finance Ministry to reconsider the decision of applying TCS at such a higher rate of 20%. The rate is exceptionally high and almost punitive to the citizens who need to make foreign payments, say experts. Earlier, TCS used to be applicable at 5% when you cross the threshold of Rs 7 lakh for certain transactions.
Debit card or credit card: Which one should you use on international trip to save on forex, ATM charges, TCS?
Debit card vs credit card: The first thing to keep in mind is that using a debit card means spending the money in your account. Credit cards, on the other hand, are handy if you face a shortage of funds while travelling abroad. Is it better to use a debit card to avoid overspending or swipe a credit card to stay away from TCS? What are the charges you need to keep in mind while using a debit or credit card abroad? Read on to find out before boarding that flight.
New 20% TCS rule from October 1, 2023: 4 tips to bring down TCS to zero during your next international trip
20% TCS on overseas tour package: When you book, offline or online, overseas tour packages, offline or online, of more than Rs 7 lakh in a financial year, you have to pay TCS at 20% from October 1, 2023. Is there any way to reduce this additional upfront cost? Here are a few tips which will help you lower your TCS burden while travelling abroad. Read on to find out.
New 20% TCS from October 1, 2023: Be ready for a cash crunch if you invest in international stocks, cryptocurrency; how to reduce TCS impact
TCS on foreign remittances from October 1, 2023: The Budget 2023 hiked TCS on foreign remittances of more than Rs 7 lakh through the LRS to 20% for investments in overseas assets, real estate, bonds, foreign company stocks, etc. The higher rate comes into effect on October 1, 2023. If you directly invest in international stocks, you should know how the new TCS rule is going to impact your investment from tomorrow.
How to cut your TCS hit if you invest in foreign assets
Starting from October 1, 2023, Indian residents investing in foreign assets will be subject to a Tax Collected at Source (TCS) of 20% on foreign remittances exceeding Rs 7 lakh. This change in tax regulations will impact those investing in international stocks or planning to acquire real estate abroad.
20% TCS from October 1, 2023: How a forex card could save you more than a credit card during international trips
TCS on forex payments: From October 1, 2023, forex cards will attract at 20% if the user loads over Rs 7 lakh on the card in a financial year. There is no TCS on international credit cards. Does it mean that credit cards will be a better option than forex cards while travelling abroad? Read carefully to find out
New 20% TCS rule from October 1, 2023: Know TCS rates on international trips, forex payments, debit, credit card, education, foreign investments
Starting from October 1, 2023, all overseas outward remittances, except for medical and educational purposes, over a threshold limit of Rs 7 lakh in a financial year will attract a tax collection at source (TCS) of 20%. From international trips to investments in foreign stocks, mutual funds, or cryptocurrencies abroad, or higher education, know how much TCS you have to pay from October 1, 2023.
300% hike in TCS from July 1, 2023: How it will impact foreign investments, international trips, credit card spends abroad
Get ready to shell out more from next month as Budget 2023 has increased Tax Collection at Source (TCS) on foreign remittance through the Liberalised Remittance Scheme (LRS) to 20 per cent from the existing 5 per cent, except in certain cases. As it is going to impact your budget significantly, you must first understand how much TCS will be levied on which transaction. ET Wealth explains
Proposed tax on international card purchases may drive sale of luxury brands in India
The Indian government's proposal to impose a 20% tax on expenditures made abroad under the Liberalised Remittance Scheme is expected to boost the sale of luxury brands in India. Due to the pandemic, international travel restrictions shifted sales to domestic stores, and the narrowing price gap between foreign and local markets, after accounting for the 20% tax collected at source, is attracting Indian consumers.
What are the new TCS rates for foreign remittances applicable from October 1, 2023
Here is the rate you will be charged for foreign remittances under LRS below and above Rs.7 lakh.
Govt clarifies how TCS will be applicable on flight tickets, hotel bookings during international trips, hostel expenses, other foreign remittances
Earlier this week, the ministry said that there will be TCS on foreign remittances of up to Rs 7 lakh per financial year. Further, it also added that the increased rates TCS will come into effect from October 1, 2023
3 ways to avoid the 20% TCS on overseas tour packages effective July 1, 2023
Starting from July 1, 2023, a tax collected at sources (TCS) of 20 per cent will apply to overseas tour packages. If you are planning to take an international trip soon, you must understand this new rule and how you can use it in the most efficient way to save your hard-earned money. Here are the 3 ways to avoid 20% TCS during your next international trip
TCS on foreign remittance transactions: 5 things to know
TCS will be 5% for amounts exceeding Rs 7 lakh for education and medical treatment abroad.
Credit card forex payments under LRS: You have to pay 20% TCS on these transactions from July 1, 2023
Credit card spending in a foreign currency will now be a part of LRS's annual limit of $2,50,000 per person. Further, it will be subject to tax collected at source (TCS). Budget 2023 has increased TCS for foreign remittances under the LRS from 5 per cent to 20 per cent (except for education and medical purposes). Know how you will be impacted
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