The Central Board of Direct Taxes clarifies that payments made by an individual using their International Debit or Credit Cards up to Rs. 7 lakh per financial year will not attract TCS. Key takeaways from the press release:
The Government has decided to postpone the implementation of its 16th May 2023, e-gazette notification. This would mean that transactions through International Credit Cards while being overseas would not be counted as LRS and hence would not be subject to TCS.
The threshold of Rs. 7 Lakh per financial year per individual in clause (i) of sub-section (1G) of Section 206C shall be restored for TCS on all categories of LRS payments, through all modes of payment, regardless of the purpose.
Increased TCS rates will apply from October 1, 2023.