Should Govt Roll Back Recent Moves On International Credit Cards?

According to a Finance Ministry notification issued on May 16, an Indian resident can remit money abroad up to a maximum of $2.50 lakh per annum without the authorisation of the RBI. Any remittance beyond the $2.5–lakh limit or its equivalent in foreign currency would require approval from the RBI. The Budget 2023-24 hiked TCS rates to 20 per cent, from 5 per cent currently, on overseas tour packages and funds remitted under LRS. The new tax rates will come into effect from July 1, 2023. The government’s decision to include all international credit card transactions under the LRS limit, and make a 20 percent TCS on such transactions mandatory caused a lot of confusion among users. We at BTTV break clear air for you as noted tax expert Dinesh Kanabar CEO, Dhruva Adivisors joins Business Today Managing Editor Siddharth Zarabi in an exclusive interview.