New taxes can have a significant impact on businesses. There are various new regulations that will take effect on October 1. The new tax collection at source (TCS) rates will also go into effect, making a change whether you are travelling overseas, or pursuing further education abroad.
All You Need To Know About TCS
Beginning on October 1, new tax collection at source (TCS) rates will be in force. Anyone who intends to travel internationally, invest in foreign mutual funds, equities, or cryptocurrencies, or pursue higher education abroad should be aware of these developments. TCS will apply if a person spends more than a specific amount throughout a fiscal year. However, according to the Finance Ministry, passengers who use foreign credit cards while visiting another country won’t be charged TCS.
You may send up to $250,000 in a fiscal year under the Reserve Bank of India’s (RBI) Liberalised Remittance Scheme (LRS). According to ET, beginning on October 1, 2023, a TCS of 20% will be applied to all overseas outgoing remittances exceeding a threshold limit of Rs 7 lakh in a financial year, excluding those made for medical and educational purposes.
However, even when the cost is below Rs 7 lakh, TCS does not provide any reimbursement for the purchase of international travel packages. From October 1, 2023, there will be a TCS of 5%. This will be applied to purchases of abroad tour packages totalling up to Rs 7 lakh in a fiscal year. From the following month, TCS will be applicable for amounts beyond Rs 7 lakh.
Also Read: Will B’luru Motorists Now Pay Congestion Tax? Report Gives A Possible Solution For Traffic Woes
What About The Other Taxes?
Not just TCS, there will be implementation of new taxes. The other taxes include:
- Starting on October 1, there will be a 28% tax on internet gaming. The amount paid or deposited to the provider, excluding the winnings from the wager, shall be used to value the supply of online gaming and casinos for the purpose of the GST levy.
- In an effort to reduce tax fraud, automated refunds of Integrated GST (IGST) on the export of pan masala, tobacco, and similar goods limited.
- The products that are subject to the automated IGST return restriction include pan masala, unprocessed tobacco, hookah, gutkha, and smoking combinations for pipes and cigarettes. Such goods are subject to IGST at 28% and a cess.
- From October, the cost of FMFL (foreign-made foreign liquor) would rise by 11–12% in Kerala.
What do you think about these new taxations?
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