Credit card expenditure abroad has changed significantly under the Indian government. The Liberalised Remittance Scheme (LRS) will govern foreign credit card transactions beginning May 16, 2023. This will help monitor high-value foreign transactions. On Tuesday, the Central Government announced FEMA amendments.
New rules take effect July 1, 2023. One feature of the modified guidelines has received social media attention. International credit card purchases will be taxed 20% starting July 1, 2023. Twitter trended “20% TCS” after this announcement.
The government’s Tuesday night notification undoubtedly sparked Wednesday’s early and popular debates. The 20% TCS rate has garnered attention, although the adjustment is meant to improve foreign transaction supervision.
Starting July 1, 2023, the Indian government will monitor high-value overseas credit card transactions under the LRS framework. However, Twitter’s top trending subject was the 20% TCS rate on overseas credit card usage.