The Income Tax Department is in talks with RBI and other stakeholders to make suitable arrangements. Recently, there was talk of deducting 20 percent TCS on credit card expenses abroad. The bank is considering the matter.
The Income Tax Department is considering making a provision to give appropriate information to the card issuing bank in the case of levy of TCS (Tax Collection at Source) charges on the expenses made through credit cards abroad. Is.
RBI is talking
According to sources, the Income Tax Department is also in talks with RBI and other parties to make a proper arrangement in this context. The point being discussed is that credit card spends abroad are aimed at the issuing bank within a specified time frame.
Credit card rules are changing from July 1
If the amount spent abroad is for studies or medical treatment, then five per cent TCS will be levied on it. However, 20 per cent TCS will be charged on expenditure for other purposes. The provision of imposing TCS is going to be implemented from July 1 on the expenses made by credit card abroad .
20 percent will be charged
The Income Tax Department will also issue a detailed list of questions and answers regarding the procedure relating to levy of TCS charges on head-wise foreign exchange expenditure.
From next month onwards, a 20 per cent charge will be levied on credit card spends abroad exceeding Rs 7 lakh. However, if there is expenditure related to education and medical, this fee will be reduced to five percent. Those taking loans for education abroad will be charged a fee of 0.5 per cent on the amount above Rs 7 lakh.
