The government has decided to extend the deadline for implementing TCS i.e. Tax Collection at Source by three months. Now the new rule of TCS will be implemented on 1 October 2023 instead of 1 July 2023. Due to the extension of the deadline for implementation, till September 30, 2023, the old rule regarding tax collection at source will continue to apply.
TCS rate has been reduced to 20 percent.
Let us tell you that while presenting the Budget 2023, Finance Minister Nirmala Sitharaman had announced to increase the rate of TCS on foreign remittances. At present, only 5% TCS is deducted on foreign remittances under LRS. It has been increased to 20 percent. However, there is an exemption in some cases. The increased rate of tax was to be implemented from July 1, 2023. At present, it has been extended for 3 months and it has been announced to implement it from 1 October.
👉 Important changes w.r.t. Liberalised Remittance Scheme #LRS and Tax Collected at Source #TCS
👉 No change in rate of #TCS for all purposes under #LRS and for overseas travel tour packages, regardless of mode of payment, for amounts up to ₹7 lakh per individual per annum
— Ministry of Finance (@FinMinIndia) June 28, 2023
Forex card charges not in TCS
The Finance Ministry has decided to issue the TCS rules from October 1. This means, only 5% TCS will be deducted on international tour packages up to Rs 7 lakh. Forex credit card payments will not come under the purview of LRS till September 30. International credit card will remain out of the category of TCS for now. At present it has not been placed in the LRS category. This situation will continue till 30 September.
TCS statement submission date extended
Here the Income Tax Department has announced to extend the date for submission of TDS/TCS statement. The date for filing Forms 26Q, 27Q and 27EQ for the first quarter of the financial year 2023-24 has been extended to 30 September 2023.
