Explained: Finance Ministry's FAQs On Remittance Scheme
NDTV
The Finance Ministry's frequently asked questions (FAQs) attempts to clear queries of people who are concerned about new charges, or tax collection at source (TCS)
The Finance Ministry has published an FAQ on its announcement that international credit card payments will come under the RBI's liberalised remittance scheme, or LRS. This means any remittance over $2.5 lakh or its equivalent in a foreign currency will need the Reserve Bank of India's (RBI) approval. The e-Gazette notification dated 16th May 2023 omits Rule 7 of the FEM(CAT) Rules, 2000. Here are the Frequently Asked Questions #FAQs w.r.t. Tax Collection at Source (TCS) on foreign remittance through the Liberalised Remittance Scheme. @RBI (1/2)👇 pic.twitter.com/CLJyHQh5ub
The Finance Ministry's frequently asked questions (FAQs) attempts to clear queries of people who are concerned about new charges, or tax collection at source (TCS).
The Finance Ministry said TCS is applicable only to remittances covered under the LRS.
The main impact will only be on investment in assets such as real estate, bonds and stocks outside India by high net worth people using their credit cards; tour and travel packages, and expensive gifts to non-residents.
