July 1 is very important for people whose children are studying abroad, or they send money abroad in any form. Because Income Tax has made important changes in its rules. Now sending money abroad will be 15 percent costlier than before.
New Income Tax Rules: If your children study abroad or you have to send money abroad in one way or the other, then you must read this news. Because the government has now made it expensive to send money abroad. That is, now it has been made mandatory to pay 20 percent income tax instead of 5 percent on sending money abroad. The changed rules will be implemented from 1 July 2023. That’s why it is very important to know the new rules for income tax once before sending money. Otherwise you will be in financial loss.
Enhanced TCS Charges
According to the new income tax rules, from July 1, on any foreign money transfer, you will have to pay 20% TCS charge instead of 5%. Let us tell you that lakhs of students of India are getting medical education abroad. Their parents have to send them money every month. Now all such parents will have to send money outside along with higher taxes. That is, you will have to deposit 20% of the amount you send abroad to the Income Tax Department. For example, it is mandatory to pay tax of Rs 20 thousand on sending Rs 1 lakh. Till now this tax was only 5 thousand rupees on 1 lakh.
What is the purpose of the government?
Actually, the IT department wants to monitor high value international credit card transactions. Not only this, he also wants to ban it if needed. Because it will help the government in maintaining foreign exchange reserves, reducing money laundering, increasing tax revenue. According to expert Anupam, “If you do not file income tax return and in such a situation TCS from you can be Rs 50,000 or more, then all future income will be subject to increased TDS or TCS of minimum 20%,,.
The rule will be applicable from July 1
Let us tell you that the TCS charge on sending money out has been increased. All these rules will be applicable from July 1. That is, if someone does a foreign transaction this month, then he will have to pay tax at the old rates only. Means 5 percent, from July 1 this tax will be increased to 20 percent. Therefore, do the transaction only after reading the entire rules of sending money abroad, so that any problem can be avoided.
