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Anticipated Tax Relief: Government Set to Exempt Overseas Card Spending from TCS Up to ₹7 Lakh In a significant move, the government is poised to announce a potential exemption from tax collected at source (TCS) on overseas credit and debit card spending, with an individual limit of up to ₹7 lakh per financial year. A senior official revealed that this announcement is expected to be part of the interim budget, and an amendment to the Income-Tax Act will be presented in the Finance Bill next y
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FAQ :
The government plans to exempt overseas credit and debit card spending from TCS, up to an individual limit of £7 lakh per financial year.
This announcement is expected to be part of the interim budget.
The proposed TCS exemption is specifically targeted at transactions falling under the Liberalised Remittance Scheme (LRS).
Yes, the exemption will apply to both credit and debit card spending up to £7 lakh per financial year.
Previously, international credit card spending was brought under LRS, subjecting it to a 20% TCS. However, the government decided to exclude spending up to £7 lakh from this TCS.
Yes, existing beneficial TCS treatment for education and health payments will also continue.
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