Finance Bill 2023: FM says all credit cards payments for foreign tours to be considered under LRS

[theglobalinvestor]

Finance Bill 2023: FM says all credit card payments for foreign tours to be considered under LRS

In her speech Nirmala Sitharaman mentioned that the RBI is being requested to look into bringing credit card payments for foreign tours within the ambit of LRS and tax collection at source thereon.

www.cnbctv18.com

This will be a major blow! 20% TCS as per the proposal.

 

[iNokia]

Hona hi tha. Tax nahi denge log toh kya hi hoga.

 

[Deleted member 9785]

wealth and inheritance tax after 2024.

 

[krishc]

Finance Bill 2023: FM says all credit card payments for foreign tours to be considered under LRS

In her speech Nirmala Sitharaman mentioned that the RBI is being requested to look into bringing credit card payments for foreign tours within the ambit of LRS and tax collection at source thereon.

www.cnbctv18.com

This will be a major blow! 20% TCS as per the proposal.

this will be very difficult to implement
and will undermine the whole purpose of a "credit" card

 

[xiddy]

The 20% TDS thing is not happening until July, right?

 

[theglobalinvestor]

this will be very difficult to implement
and will undermine the whole purpose of a "credit" card

Implementation will fall on credit card issuers and the onus for penalties and fines will fall on the tax payer as usual.

 

[theglobalinvestor]

The 20% TDS thing is not happening until July, right?

Yes, 1st July onwards AFAIK.

 

[CMG]

Please explain Like I'm 5.

Can we claim this back while filing taxes? Who will collect TCS and pay the goverment so that it shows up in income tax portal?

 

[Copycat]

Please explain Like I'm 5.

Can we claim this back while filing taxes? Who will collect TCS and pay the goverment so that it shows up in income tax portal?

Yes, you can claim it back when filing your tax returns, if you have paid extra taxes
The Bank (or for the new rule, the Credit Card issuer most probably) through which you make the payment will collect it and deposit it with the government so that it shows up in your 26AS

 

[jade]

This was expected. However the removal of indexation benefits and no LTCG tax on debt funds was unexpected

 

[thanix]

Yes, you can claim it back when filing your tax returns, if you have paid extra taxes
The Bank (or for the new rule, the Credit Card issuer most probably) through which you make the payment will collect it and deposit it with the government so that it shows up in your 26AS

If I am on international travel and use my credit card there, is it subject to TCS? From first dollar? And it will be done by card issuer in statement? I have to get it back during IT filing. Is it the case?

 

[theglobalinvestor]

If I am on international travel and use my credit card there, is it subject to TCS? From first dollar? And it will be done by card issuer in statement? I have to get it back during IT filing. Is it the case?

Yes!

 

[cc_newbie]

Only for credit card transactions?

Forex card or debit card is safe?

 

[krishc]

Only for credit card transactions?

Forex card or debit card is safe?

Debit is already under LRS
CC is outside yet
Forex not sure

 

[Slayer]

Hona hi tha. Tax nahi denge log toh kya hi hoga.

Didn't want to be politcal but apt af

 

[thanix]

Debit is already under LRS
CC is outside yet
Forex not sure

I read that there was a exemption of 7L for debit card earlier. Now all gone gone. And this is from first dollar onwards. One Twitter user has put forex loads is also covered.

 

[thanix]

What I am not clear is whether it is only on travel to foreign countries or any international transaction from here. I have subscribed to a digital magazine from abroad and use credit card each month. Now will there be 20% TCS applicable on it?

 

[theglobalinvestor]

Yes, I believe it will be on all forex transactions. Seems the govt didn't think it through fully.

 

[jade]

Yes, I believe it will be on all forex transactions. Seems the govt didn't think it through fully.

Except on medical and education trxns

 

[iNokia]

Didn't want to be politcal but apt af

Aayegi toh bjp hi. People pissed by this are a minority and even if they vote 'con'gress nothing will happen.