Tax Hike On international Transactions (TCS) Pushed Back To October 1

The implementation of a higher rate of tax collected at source (TCS) of 20% on overseas remittances under LRS has been deferred by three months.

The government on Wednesday said overseas spending using international credit cards will not be included under the Liberalised Remittance Scheme (LRS) and hence, would not attract TCS.

Also, the implementation of a higher rate of tax collected at source (TCS) of 20 per cent on overseas remittances under LRS, like tour expenses, has been deferred by three months and will come into effect from October 1.

However, credit card spending overseas will not attract TCS from October 1.

The higher TCS rate will be applicable only when the LRS payments exceed the threshold of Rs 7 lakh.