Posted inNews

New Delhi to impose 20% tax on overseas credit card expenses of Indians from July 1, with lower rates for education and medical treatment-related visits, clarifies finance ministry. The credit card issuer will collect the tax when the bill is settled in rupees and can be adjusted against the cardholder’s tax liability when paying taxes. The inclusion of overseas use of credit cards within the purview of the Reserve Bank of India’s liberalized remittance scheme is effective from 16 May. Currently, the TCS rates range from 0.5% to 5%.