On Wednesday, the government announced the postponement of the implementation of new Tax Collected at Source rates. The new implementation date has been moved from July 1, 2023, to October 1, 2023. The Ministry of Finance stated that this decision was made to allow sufficient time for banks and card networks to establish the necessary IT-based solutions.
The government has announced an extension for the implementation of revised Tax Collected at Source (TCS) rates and the inclusion of credit card payments under the Liberalised Remittance Scheme (LRS). Additionally, the decision to include transactions for overseas travel under LRS has been rolled back.
However, it's important to note that the TCS rates remain unchanged for all purposes, including overseas travel tour packages, regardless of the mode of payment, for amounts up to Rs 7 lakh per individual per annum. Furthermore, transactions made through international credit cards while abroad will not be considered under LRS and will not be subject to TCS, as confirmed by the ministry.
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