Who does not dream of taking an international trip to their dream destination? All of us have that wanderlust hidden somewhere inside to explore the most beautiful destinations in the world. The urge and demand for foreign travel have exponentially increased after the lifting of COVID-19 lockdowns and all the travel restrictions. Though ticket fares are seeing such a rise, these are not impacting globetrotters to go on international vacations.
This Is Why Foreign Travel Will Get Costlier From July 2023
This summer season is witnessing a major rise in abroad holidays across the world. The reason behind such a surge is not just the bustling holiday season. Another primary reason for many people planning to travel abroad right now is the rise in Tax Collected at Source (TCS) from July. The rise in tax is not going to be just a few percent and the new change will make foreign travel experiences quite expensive.
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The TCS on foreign travel will increase to 20 per cent from the present 5 per cent, according to a report by Business Today. This new rise will come into action from 1 July 2023. This rate will be applicable to the overall amount on the amount spent. An example of applying this new TCS rate will be purchasing tour packages in international destinations.
New TCS Rate To Apply On International Credit Card Uses As Well
The new TCS rate is going to be effective while using a credit card in overseas places. The tax rate has increased to 20 per cent while transacting with credit cards in international destinations. This new TCS rate on the payment procedure using international credit cards abroad is falling under the Liberalised Remittance Scheme (LRS). The inclusion within the LRS took place on 16 May 2023.
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The new rule of applying 20 per cent TCS is applicable to both tour packages overseas and using credit cards abroad.
Many Netizens are not happy with this new TCS rate of 20 per cent.
yes quite silly a regulation. will also make the process cumbersome as for a person travelling abroad there might be dozens of swipes on the card for small amounts
— Navneet Bhaiya (@navneetbhaiya) May 18, 2023
Absolute useless idea !! Why does the govt tax middle class alone?? Instead of cracking down on hawala transactions that are happening in the country , the govt wants to curb black money by taxing a simple indian family using credit card abroad ??? Ridiculous
— Manas (@ManasSomeya) May 18, 2023
What do you have to say about this new change coming into action from the month of July? Do you have plans to go on a foreign travel journey anytime soon?
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