The Government of India has announced that there will be no TCS (Tax Collected at Source) on overseas spending of up to Rs 7 lakh per year using international debit or credit cards. This is a welcome move for Indian citizens who travel abroad or shop online from international websites.
TCS is a tax that is levied on payments made to non-residents. It is currently levied at the rate of 20%. The government has decided to waive TCS on overseas spending of up to Rs 7 lakh per year to make it easier for Indian citizens to make international payments.
This move is expected to benefit a large number of Indian citizens who travel abroad or shop online from international websites. It will also help to boost the Indian economy by encouraging more people to make international payments.
Here are some of the key benefits of the no TCS on overseas spending with international debit or credit card upto Rs 7 lakh per year:
- It will make it easier for Indian citizens to make international payments. This is because they will no longer have to pay TCS on their payments. This will make it more affordable for Indian citizens to travel abroad or shop online from international websites.
- It will help to boost the Indian economy by encouraging more people to make international payments. This is because when Indian citizens make international payments, they are essentially putting money into the Indian economy. This money can then be used to buy goods and services from Indian businesses, which will help to create jobs and grow the economy.
- It will save Indian citizens money on TCS. This is because they will no longer have to pay TCS on their payments up to Rs 7 lakh per year. This could save Indian citizens a significant amount of money, especially if they travel abroad or shop online frequently.
- It will make it more convenient for Indian citizens to shop online from international websites. This is because they will no longer have to worry about paying TCS on their payments. This will make it more likely that Indian citizens will shop online from international websites, which will give them access to a wider range of goods and services.
The no TCS on overseas spending with international debit or credit card upto Rs 7 lakh per year is a positive move by the government. It will benefit a large number of Indian citizens and help to boost the Indian economy.
Here are some of the points to keep in mind about the no TCS on overseas spending with international debit or credit card upto Rs 7 lakh per year:
- The TCS exemption is only applicable for payments made using international debit or credit cards. This means that if you make a payment using a domestic debit or credit card, you will not be able to claim the TCS exemption.
- The TCS exemption is only applicable for payments up to Rs 7 lakh per year. This means that if you make a payment that is more than Rs 7 lakh, you will not be able to claim the TCS exemption.
- The TCS exemption is not applicable for payments made to non-residents for goods or services that are consumed in India. This means that if you buy a product from an online retailer that is based outside of India, you will not be able to claim the TCS exemption if the product is shipped to India.
In our opinion, the no TCS on overseas spending with international debit or credit card upto Rs 7 lakh per year is a positive move by the government. It will benefit a large number of Indian citizens and help to boost the Indian economy.
