Key tax changes to kick in today
4 years, 2 months ago

Key tax changes to kick in today

Live Mint  

Several key direct and indirect tax changes will kick in from 1 October that businesses and individual taxpayers need to take note of. Bankers would be liable to collect TCS and remit to the government; therefore, the incidence of TCS is on the remitter, said Sandeep Jhunjhunwala, partner at Nangia Andersen LLP, a tax advisory firm. Banks may start collecting tax at source even on international credit card transactions done in foreign currency, said Vikram Doshi, partner tax, PwC India. TCS on sale of goods Sellers having ₹10 crore revenue in the previous year need to collect income tax at source at the rate of 0.1% on receipt of sale consideration above ₹50 lakh.

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History of this topic

Sending money abroad? Here’s how to reclaim your TCS
3 weeks, 6 days ago

Sending money abroad? Here’s how to reclaim your TCS

Live Mint  

I want to send money to my son in the US under the Liberalised Remittance Scheme. However, the increased tax rate is applicable only on transfers made on or after 23 July 2024. For transfers during 1 April 2023 to 22 July 2024, earlier tax rate of 10% is applicable. Also, in case of short-term capital gain, the tax rate …

Income tax benefits, capital gains tax hike, cheaper phones | Key Budget takeaways
5 months ago

Income tax benefits, capital gains tax hike, cheaper phones | Key Budget takeaways

Hindustan Times  

Finance minister Nirmala Sitharaman on Tuesday proposed the much-awaited change in the income tax slabs as she tabled the first Union Budget of the new Narendra Modi government. "Under the new tax regime, tax rate structure to be revised as follows - ₹0- ₹3 lakh -Nil; ₹3-7 lakh -5%; ₹7-10 lakh-10%; ₹10-12 lakh-15%; ₹12-15 lakh- 20% and above ₹15 lakh-30%," …

Aim for tax simplicity: Do away with TCS on foreign remittances
5 months, 1 week ago

Aim for tax simplicity: Do away with TCS on foreign remittances

Live Mint  

As the deadline for filing income tax returns nears, aspects of the tax law that need reform are in focus. Amendments of the law have made TCS applicable to transfers of money abroad under India’s liberalized remittance scheme, which permits people to move up to $250,000 each year out of the country. The scope of TCS was also extended to …

Union Budget 2024: Overseas credit card spending above ₹7 lakh may be taxed 20%
5 months, 1 week ago

Union Budget 2024: Overseas credit card spending above ₹7 lakh may be taxed 20%

Hindustan Times  

The Union Budget 2024, which is scheduled to be presented on July 23 may bring overseas credit card spending above ₹7 lakh under the Liberalised Remittance Scheme, which means that the government would be able to collect a 20% tax on it, Moneycontrol reported, citing an unnamed government official. Expenses paid internationally using debit cards, forex cards, or other payment …

New Tax regime rules to come into effect from today: Check deductions, rebates, changes in tax slab
8 months, 3 weeks ago

New Tax regime rules to come into effect from today: Check deductions, rebates, changes in tax slab

India TV News  

As the new financial year begins on April 1, there will be changes to India's income tax regulations. The Centre will implement the New Tax Regime as the default setting, which implies that unless individuals manually choose to abide by the old tax structure, taxes will be automatically assessed and applied according to this new system. The tax slabs will …

Tax collection at source: Who issues a TCS certificate and when?
1 year, 1 month ago

Tax collection at source: Who issues a TCS certificate and when?

Live Mint  

Tax collection at source, or TCS, is an additional amount collected as tax by a seller of specified goods from the buyer at the time of sale over and above the sale amount and is remitted to the government account. Starting Oct 1, 2023, the Government of India introduced TCS rate of 20 percent on foreign remittances of more than …

What is tax collection at source on foreign remittances under LRS? An explainer
1 year, 4 months ago

What is tax collection at source on foreign remittances under LRS? An explainer

Live Mint  

In the Budget 2023, government rolled out a higher tax collection at source of 20 percent on outward remittances under the Liberalised Remittance Scheme The higher tax rate was supposed to come into effect from July 1 onwards, but on June 28, 2023, a finance ministry notification clarified that the higher rates will come into force when the threshold is …

ITR filing: Sending money outside India? Know the new income tax rule
1 year, 6 months ago

ITR filing: Sending money outside India? Know the new income tax rule

Live Mint  

Every overseas remittance made under the liberalised remittance scheme would be subject to a 20% tax collected at source starting 1 July 2023, with the exception of those sent for medical and educational expenses, for which a 5% TCS will be imposed after the threshold of ₹7 lakh is exceeded annually. Starting 1 July 2023, Tax Collected at Source on …

Explained | Will all overseas spends come under the tax net?
1 year, 7 months ago

Explained | Will all overseas spends come under the tax net?

The Hindu  

The story so far: A proposal in the Union Budget to levy a higher tax on some types of remittances of funds abroad came into the limelight again this week after a notification was issued for its implementation from July 1. The Reserve Bank is being requested to look into this with a view to bring credit card payments for …

As 20% TCS on foreign remittances is set to kick in, we untangle its mystery here
1 year, 7 months ago

As 20% TCS on foreign remittances is set to kick in, we untangle its mystery here

Live Mint  

Travelling to an overseas destination or remitting money abroad is set to be attract a higher rate of tax with 20 percent TCS to kick in from July 1, 2023 onwards. It is, however, vital to note that those who are remitting money abroad for education and for medical treatment will continue to pay a lower rate for remittances in …

Spend up to ₹7 lakh abroad with your cards without worrying about TCS
1 year, 7 months ago

Spend up to ₹7 lakh abroad with your cards without worrying about TCS

Live Mint  

After backlash over 20% TCS on overseas credit card spending, the government on Friday announced that no tax will be charged on overseas spending of up to ₹7 lakh in a year using debit or credit cards. "To avoid any procedural ambiguity, it has been decided that any payments by an individual using their international Debit or Credit cards up …

Govt clarifies payments abroad for up to ₹7 lakh will not be taxed
1 year, 7 months ago

Govt clarifies payments abroad for up to ₹7 lakh will not be taxed

Hindustan Times  

The government issued a clarification on Friday stating that a 20% Tax Collection at Source will be applicable only to overseas credit card transactions exceeding ₹7 Lakh. Previously, on Thursday, the government announced the inclusion of credit card transactions in foreign currency under the LRS and the implementation of a 20% TCS starting July 1, 2023. These are credit card …

Tax waived on annual forex spends up to ₹7 lakh: Finance Ministry
1 year, 7 months ago

Tax waived on annual forex spends up to ₹7 lakh: Finance Ministry

The Hindu  

The government, on May 19, blinked on its plan to levy a 20% tax on overseas credit card spending from July 1, in the face of a furore from taxpayers as well as businesses, and decided to exempt any payments by an individual using their international debit or credit cards up to ₹7 lakh per financial year from the levy. …

No Tax On Foreign Credit Card Spend Up To Rs 7 lakh
1 year, 7 months ago

No Tax On Foreign Credit Card Spend Up To Rs 7 lakh

Deccan Chronicle  

New Delhi: The government on Friday clarified that any individual making payments using their international debit or credit cards, up to Rs 7 lakhs per financial year, will be exempted from the Liberalized Remittance Scheme limits and will not be subject to Tax Collected at Source. To avoid any procedural ambiguity, it has been decided that any payments by an …

20% tax at source for offshore credit deals
1 year, 7 months ago

20% tax at source for offshore credit deals

Deccan Chronicle  

Mumbai: Come July 1, any payment made using a credit card to foreign vendors will be subjected to tax collected at source at 20 per cent irrespective of the amount paid. While moving the Finance Bill 2023 for consideration and passage in the Lok Sabha the Finance Minister Nirmala SItharaman had said that cross-border credit card payments are currently not …

Foreign remittances: With 20% tax collection at source, sending money abroad to pinch more; details here
1 year, 10 months ago

Foreign remittances: With 20% tax collection at source, sending money abroad to pinch more; details here

Live Mint  

Travelling to an overseas destination or remitting currency abroad to your kin will now carry an extra financial burden of 20 percent towards the tax credit from the next financial year, announced the Union Finance Minister Nirmala Sitharaman during the Budget 2023. “The government seemingly wants to dissuade citizens from sending foreign currency abroad, and hence — levied a higher …

Budget 2023 | Those earning up to ₹7 lakh a year need not pay income tax
1 year, 10 months ago

Budget 2023 | Those earning up to ₹7 lakh a year need not pay income tax

The Hindu  

Finance Minister Nirmala Sitharaman on Wednesday announced that those earning up to ₹7 lakh a year need not pay any income tax under the new tax regime, giving a push for the regime which disallows all exemptions on investments. Those earning up to ₹7 lakh annually and opting for new tax regime, could save ₹33,800. “It is proposed to increase …

5 new income tax rules that will come into effect from 1 April
3 years, 9 months ago

5 new income tax rules that will come into effect from 1 April

Live Mint  

Union Finance Minister Nirmala Sitharaman presenting Union Budget 2021 had announced a slew of changes in the income tax rules. Let's take a look at 5 income tax changes that will come into effect from 1 April: 1) PF tax rules: Interest on annual employee contributions to provident fund over ₹2.5 lakh would be taxed from 1 April 2021. 2) …

Budget 2021: ’ Reduce tax on foreign remittance to boost overseas investments’
3 years, 11 months ago

Budget 2021: ’ Reduce tax on foreign remittance to boost overseas investments’

Live Mint  

The Finance Minister, in the last financial year had introduced a Tax Collected at Source of 5% on all outward remittances above ₹7 lakh. Indian residents can remit up to USD 250,000 under the LRS every year for various purposes such as medical treatment, gifts, maintenance of relatives abroad, foreign education and investment in real estate, stocks and bonds. However, …

5% tax on foreign tour, investments and study abroad from today: Details here
4 years, 2 months ago

5% tax on foreign tour, investments and study abroad from today: Details here

Live Mint  

Authorised dealers, typically banks and remittance companies will collect 5% tax at source once LRS remittance made by an individual crosses 7 lakh in a financial year. For the current financial year, any remittances made post March 2020 will count towards the 7 lakh threshold. Viram Shah explains, "If you have transferred ₹6 lakh before October and you transfer additional …

Key tax changes kicking in from tomorrow
4 years, 2 months ago

Key tax changes kicking in from tomorrow

Live Mint  

Several key direct and indirect tax changes will kick in from 1 October, which businesses and individual taxpayers need to take note of. Bankers would be liable to collect TCS and remit to the government, therefore, incidence of TCS is on the remitter, explained Sandeep Jhunjhunwala, partner at Nangia Andersen LLP, a tax advisory firm. Banks may start collecting tax …

Should 5% tax on foreign transfers discourage you from investing in US stocks?
4 years, 3 months ago

Should 5% tax on foreign transfers discourage you from investing in US stocks?

Live Mint  

The Union Budget 2020 introduced a tax collected at source on forex transactions. A 5% TCS will be applicable on all remittances above ₹7 lakh under RBI’s Liberalized Remittance Scheme. For instance, if you remit ₹10 lakh in a financial year, TCS will apply to the excessive ₹3 lakh at a rate of 5%, and thus will incur a tax …

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