Govt is wrong on TCS

Govt can give as many explanations on why TCS on foreign transactions but they are wrong. TDS is very different from TCS.

TDS is deducted from salary or FD interest- which is ur earnings & you anyway have to pay tax on your earnings.

TCS- this is deducted on expenses. You are not supposed to pay tax on expenses.

Nobody in the world does this kind of 20% TCS!

If govt wants to track- govt can put 1% TCS.

You can buy a car for 2 crores in India- you pay only 1% TCS.

Real estate transactions also have 1% TCS only.
Why put massive 20% here vs 1% in real estate?

Real estate is biggest cash bin in India. more

20 pct tax deduction on foreign travel spending

Decision to add Credit card spend in forex under LRS and tax 20% is a criminal move. Anyone who travels abroad,uses credit cards for everything from food to stay. 20% additional cost will have many of us thinking twice about traveling abroad. Is this move to encourage domestic tourism?

Helpful Transforming India May 19

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Tiru Narayan (Retired)

I am still trying to learn/understand why TCS on CC purchases when a resident travels to other countries. Though high TCS in this case, I think it can be refunded when Income Tax Returns is filed, depending on the income level (someone knowledgeable in Indian Income Tax should verify this). more

May 20

Pananghatukara Ramaswamy

Is it not an expenditure tax specifically in foreign exchange transactions? On credit card transactions in India no such tax is there. Credit card companies are giving a service and GST is not being levied as the merchant does it according to bill. Why on foreign exchange transactions? Do the GOI consider conversion as a service? If so are they not to levy the tax on conversion of foreign exchange into Rupee in India by tourists and inward remitters? more

May 20

Mani V (Management Professional)

Thanks for the clarification more

May 19

Umesh Kumar

While 20% TCSis certainly too high, one can use Forex card and avoid it. more

May 19

BS SUBHLOK

All Credit Card transactions are recorded and the Cards are linked to PAN. So whatever data any agencies want is available to them. Where is the need for 20% TCS. If you want indicators, you may keep it at 1% TCS. I think this Govt now, to earn money, is stooping down to harassing the public. No doubt their popularity is reducing and their days are numbered. more

May 19

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