Since October 2023, foreign transactions above Rs 7 lakh under Liberalised Remittance Scheme have attracted a 20% tax collected at source. It’s sending a signal to big spenders abroad: we are watching you.
It was high post-pandemic foreign spending that pushed govt to impose checks, but these are not working to reduce either tourism spending or real estate purchases abroad.
Minutes of Chintan Shivir held in August reveal concerns over high net-worth individuals taking wealth out of India, need to reform tax system and avoid ‘knee-jerk’ policy formulation.
Modi govt should have predicted the outrage over the hike in Tax Collected at Source on foreign transactions. But a lack of logic didn't stop it before, so why should it start now?
According to May notification, credit card payments abroad would've attracted 20% tax collected at source. New rate on other foreign transactions to apply only if it exceeds Rs 7 lakh, says govt.
The 10-year contract, signed in early 2018, involved TCS working with Transameria to enable the digitization of more than 10 million policies into a single integrated platform.
Attempts are being made to link TCS with the tax deducted from taxpayers’ salaries. The CEA also backs the govt’s rationale for raising TCS rate to 20%
Prior to the clarification, all such non-medical, non-educational transactions would've attracted 20% TCS from 1 July. Govt imposing TCS on foreign credit card spends was widely criticised.
Israel's response to Iran's retaliatory attack was relatively small and also downplayed by Tehran. But there are factors that could jeopardise this perceived reprieve.
The 125 APAs include 86 Unilateral APAs (UAPAs) and 39 Bilateral APAs (BAPAs). The total number of APAs since the start of the APA programme has risen to 641, with 506 UAPAs and 135 BAPAs.
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