New TCS Rules: New TCS rules on foreign travel, investment in foreign shares and mutual funds have come into effect from October 1, 2023. From October 1, 20 percent TCS will be levied on any remittance of more than Rs 7 lakh for purposes other than medical and education.
New Delhi. If you are planning to travel abroad or are thinking of investing in foreign properties or financing higher education abroad, then this news is useful for you. Actually, from today i.e. October 1, 2023, the new rule of Tax Collection at Source (TCS) has come into effect. Let us tell you that TCS is a tax levied on any kind of transaction done by Indian citizens including studying, traveling or investing abroad.
From October 1, 20 percent TCS will be levied on any remittance of more than Rs 7 lakh for purposes other than medical and education. Different TCS rates will be applicable for the first and second half of the financial year, but the limit of Rs 7 lakh will be applicable for the entire year. Let us know what will become expensive abroad from October 1 and what expenses will remain unchanged.
According to the new TCS rules on medical expenses
if the amount exceeds Rs 7 lakh for those seeking treatment abroad, then 5 percent TCS will be applicable.
Now 5 percent TCS will be levied on purchase of foreign tour packages
worth less than Rs 7 lakh from October 1, 2023. For packages above Rs 7 lakh, the TCS rate will be 20 percent.
Investment:
Investing more than Rs 7 lakh in foreign stocks, mutual funds, cryptocurrencies or property during a financial year will attract 20 percent TCS. However, domestic mutual funds with foreign stock exposure are exempt. If you understand in simple language, if you have invested in an Indian mutual fund that deals in foreign investment, then no TCS will be charged on it.
Debit/Credit/Forex card
credit card transactions will be exempted from TCS. On the other hand, if debit and forex card transactions exceed Rs 7 lakh, TCS will be levied at the rate of 20 percent from October 1, 2023.
