New Delhi: The government has extended the date of implementation of revised TCS rates by 3 months. These will now come into effect from 1 October. The Finance Ministry has issued a notification on Wednesday. It was said in this notification that the increased TCS rates will be effective from October 1 this year. In the old notification, this date was mentioned as July 1. In this way, the government has extended the date of implementation of this amendment by 3 months.
Credit card payment will not come in LRS
In March, it was announced that credit card payments would also be brought under the LRS. This was followed by several comments and suggestions, which have been taken note of by the Finance Ministry. In view of these, the Finance Ministry has made some changes. The government said that transactions done abroad through international credit cards will no longer come under the purview of LRS. This means that TCS will no longer be applicable on this expenditure. Now from October 1, 2023, there will be no TCS on credit card expenses abroad.
👉 Important changes w.r.t. Liberalised Remittance Scheme #LRS and Tax Collected at Source #TCS
👉 No change in rate of #TCS for all purposes under #LRS and for overseas travel tour packages, regardless of mode of payment, for amounts up to ₹7 lakh per individual per annum
— Ministry of Finance (@FinMinIndia) June 28, 2023
The rate will increase on these expenses
The government had increased the TCS rate above Rs 7 lakh in the Liberalized Remittance Scheme (LRS) for other purposes in the Finance Act 2023. At the same time, there was no change in the rates of TCS for all purposes under LRS on amount less than Rs 7 lakh per annum. The government has also given more time to implement the new TCS rates. The increased TCS rates will be applicable from October 1, 2023. In this year’s budget several changes were announced in the system of TCS on payments under LRS and Foreign Tour Program packages.
