New TCS Rules: New TCS rules will be implemented from October 1, know what will be the impact on your foreign travel!

PC: Hindi.news18

If you are planning to go abroad for holidays or for studies, then there is some important news for you. From October 1, 2023, new tax collection at source (TCS) rates will be applicable under the Liberalized Remittance Scheme (LRS) of the Reserve Bank of India (RBI). Simply put, the new TCS rules will be applicable to foreign travel, foreign shares, and mutual fund investments above a certain limit.

Revised TCS rates for educational expenses abroad

Under LRS, no TCS will be levied on foreign remittances for educational expenses up to Rs 7 lakh. If you send more than Rs 7 lakh for foreign studies in a financial year, you will have to pay 0.5% TCS. Additionally, if you send more than Rs 7 lakh to study abroad without a loan, you will be charged 5% TCS. These rules will also be applicable to expenses related to treatment abroad from October 1, 2023.

PC: iPleaders

TCS rates for foreign tour packages

Starting from October 1, 2023, if you buy a foreign tour package worth more than Rs 7 lakh in a financial year, you will have to pay 20% TCS. If the cost of your tour package remains less than Rs 7 lakh in a financial year, 5% TCS will be applicable. This change in TCS rates will impact foreign travel expenses.

TCS rates for foreign investment

From October 1, 2023, if you invest more than Rs 7 lakh abroad in a financial year, you will be charged 20 percent TCS. This means that if you buy foreign shares, mutual funds, or cryptocurrencies worth more than Rs 7 lakh in a financial year, you will have to pay 20% TCS. However, no TCS will be levied on investments in Indian mutual funds dealing with foreign investments.

PC: The Economic Times

TCS rates for credit card expenses

Payments made through credit cards are not covered under the Liberalized Remittance Scheme. Therefore, no TCS will be charged on expenses incurred through credit card payments. For transactions using debit and forex cards starting October 1, 2023, 20% TCS will be applicable if the expenditure exceeds Rs 7 lakh.