Foreign Trip Update: If you are thinking of traveling abroad or are on a trip, then this news is very useful for you. Because foreign travel is going to become expensive from October 1..
The government has increased the TCS applicable on foreign travel to 20 percent. The burden of which is going to fall on your pocket.. Let us tell you that currently, under the LRS of the Reserve Bank, five percent TCS is levied on the amount of more than Rs 7 lakh transferred abroad. TCS rates will be 20 percent from October 1. Let us tell you that till now only 5 percent TCS had to be paid on foreign travel.
What change will come?
Let us tell you that at present no TCS is levied on LRS transfer of up to Rs 7 lakh in a financial year. This rule will remain in force from October 1 also. But currently 5 percent tax is levied on the expenses incurred in foreign tour packages. From October 1, it will be increased to 20 percent. The increased rates will be implemented from October 1. According to the new rule, TCS of five percent will continue on annual expenditure of more than Rs 7 lakh each for medical treatment and education. After which the expenses incurred till now will increase to one and a half times more.
Exemption for those studying:
According to the information, a lower TCS rate of 0.5 percent will be applicable for those taking loan for foreign education above the limit of Rs 7 lakh. TCS rates were increased from five percent to 20 percent for Budget 2023-24. The Finance Ministry had also announced the implementation of higher rates on June 28. Which is now ready to be implemented. It is being told that the increased TCS will be implemented from October 1.
