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The government proposed on Wednesday to increase the TCS fee to 20 percent on package tours for trips abroad and money remittances outside India. Through the Finance Bill 2023-24 proposed through the budget tabled in Parliament on Wednesday, a proposal was made to amend Section 206C of the Income Tax Act by levying the Proceeds of Tax on the Source (TCS) in foreign travel programs.
When will the rule apply?
Under the Reserve Bank of India’s (RBI) Liberalized Remittance Scheme, 20 per cent TCS will be imposed when sending more than seven lakh rupees out of India. These modifications will enter into force as of July 1, 2023.
What is the standard deduction, in which an exemption of Rs 52,500 will be available?
What is the expert opinion?
Amit Agarwal of advisory firm Nangia Andersen said the increase in TCS from five percent to 20 percent is quite surprising given the comfortable position of foreign reserves. He said that in this way the government wanted to discourage extravagant spending on foreign tours.
Do you know what will be cheap or expensive after the budget?