CARDBITRAGE
TF Ace
Quick question. How do they generally determine if the threshold has been breached? Let's say I decide to spend 7L from card A and 7L from card B, what would be the tax implications?
It would be considered educational expenses only for remittance that would directly be done to the educational institution's account. So taking funds as cash/forex cards or transferring funds to a student's account would be taxed at 20%. Just saying, you could use pan of another family member if you want to avoid this. But consult your tax advisor on the same.Great share mate. Please help understand better as per scenario that one goes abroad to study say for 2 years,
1. how much tcs will these attract:
Buying laptop
Rent for accommodation
Food expenses
Travel expenditure
University fees
Books, supplies, stationary
Insurance payments
2. Given all the expenses are done because of educational purpose and not as tourism or bringing stuff back to india to sell, etc. Now how will govt get to know that one bought laptop, paying for food, rent to support study. How will govt count all this expense under educational purpose.
3. Obviously this amount will be more than 7 lakhs in an year even if counted under education expense. Min tuition fees abroad is 12-15 lakh for an year. Considering other expenses it will easily go beyond 20L.
That's a challenge for banks and the RBI.Quick question. How do they generally determine if the threshold has been breached? Let's say I decide to spend 7L from card A and 7L from card B, what would be the tax implications?
According to the final clarification from MOF, for all associated expenses (education and medical) 5% TCS will charged.It would be considered educational expenses only for remittance that would directly be done to the educational institution's account. So taking funds as cash/forex cards or transferring funds to a student's account would be taxed at 20%. Just saying, you could use pan of another family member if you want to avoid this. But consult your tax advisor on the same.
Hmm. So technically, a student can then load $250,000 on their forex cards/year and pay only 5% TCS. That is a big loophole that can be exploited in my opinion.According to the final clarification from MOF, for all associated expenses (education and medical) 5% TCS will charged.
Why are you so worried about loopholes now? Let the government worryHmm. So technically, a student can then load $250,000 on their forex cards/year and pay only 5% TCS. That is a big loophole that can be exploited in my opinion.