Key Points
MUMBAI: Outward remittances by resident Indians declined 37% in October, the first month after the government stepped up tax deductions at source on such expenses, data from the Reserve Bank of India (RBI) showed...
All major heads - overseas travel, educational expenses, maintenance of close relatives, and investments in deposits and equities - fell sharply...
Among all major eligible segments for remittances, overseas travel accounted for 63 percent of outward remittance during the month and fell 22 percent to $ 1.4 billion from $ 1.8 billion in September...
"Further, with the new requirement for repatriation of unused funds under LRS accounts within 180 days, resident individuals are utilizing their accumulated funds and dividends in their overseas LRS accounts for international travel instead of directly making remittances under LRS for travel purposes."..
"Travel spending through credit cards for overseas travel could have risen as it is still out of ' LRS' ambit, said Chitrabhanu K G, senior vice president and country head, retail assets and cards at Federal Bank...
You might be interested in
Overseas spending using credit cards not to attract TCS
28, Jun, 23New TCS rule on foreign remittance will come into effect from October 1 | Latest News India
Outward remittances under RBIs LRS in April-January surpass FY22
21, Mar, 23The figure in FY22 was the highest ever in any financial year
No TCS on overseas spending up to Rs 7 lakh per year by credit or debit cards: GOI
19, May, 23The Government of India on Friday has announced that individuals 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 (LRS) limits and will not be subject to Tax Collected at Source (TCS). Furthermore, the existing beneficial TCS treatment for education and health payments will be maintained.
Government pauses TCS on international credit card spends. Here’s why
29, Jun, 23The government said international credit card spends while overseas would not be subject to TCS for now. Here's why the decision has been put on hold.
Travel leads foreign spends to 10 month high in July
23, Sep, 24India Business News: Mumbai: Outward remittances by Indians rose to their highest level in 10 months to nearly $2.
Indians spending over USD 1 billion every month on foreign travel
21, Feb, 23Indians are spending nearly USD 1 billion every month on foreign travel which is significantly more than the pre-Covid levels, reveals Reserve Bank data on outward remittances.
Govt drops plans to levy TCS on overseas credit card spends
29, Jun, 23New Delhi, Jun 28 (PTI) The government on Wednesday dropped plans to levy TCS on overseas payments made through international credit cards and said such expenses will be included in the Liberalised Remittance Scheme (LRS) of the RBI. The Finance Ministry has also deferred by three months the implementation of a higher Tax Collected at […]
Confusion persists on post-Oct 1 TCS regime
30, Jun, 23Experts have criticised the government’s decision as multiple tax rates would make the system complicated and lead to a compliance nightmare | Latest News India
International credit card spends outside India will attract 20% TCS: How cardholders may be impacted
18, May, 23Experts said the changes for the credit card spends are expected to add to the compliance burden of banks and financial institutions.
Banks say systems are not yet ready for new TCS regime
24, Jun, 23Indian banks are claiming that they do not yet have the requisite software to implement new rules relating to tax collection at source for foreign debit and credit card transactions, due to start from July 1. Rules issued by the Central Board of Direct Taxes last month require foreign card spending above INR700,000 ($10,874) to be counted towards the Liberalised Remittance Scheme and taxed at 20%. fn