Credit Card News: If you also use a credit card, then there is important news for you. Now customers using credit cards will have to give full details of the money spent to the bank.
Credit Card: If you also use a credit card, then there is important news for you. Now customers using credit cards will have to give full details of the money spent to the bank. In a statement, the Income Tax Department said that if TCS charges are levied on foreign credit card spends, it is considering providing appropriate information within a prescribed period to the card issuing bank.
Official sources informed by RBI
Said that the Income Tax Department is also in talks with the Reserve Bank of India and other stakeholders to make suitable arrangements in this regard. Discussions are on at this stage that the purpose of credit card spend abroad should be given to the issuing bank within a specified period.
How much will TCS cost?
If the amount spent abroad is for education or medical treatment, 5 per cent TCS will be levied on it, while 20 per cent TCS will be levied on expenditure for other purposes. The provision of levying TCS on foreign credit card expenses is going to be implemented from July 1. The Income Tax Department will also issue a detailed list of procedural questions and answers in respect of TCS charges levied on foreign exchange expenditure incurred under various heads.
20 percent will be charged
From the next month if the spend on the credit card abroad exceeds Rs. If it is more than 7 lakhs, 20 percent fee will be charged. However, if there are expenses related to education and medical, this fee will be reduced to five per cent. Those taking loans for education abroad will be charged at the rate of 0.5 percent on the amount of more than seven lakh rupees.
