Government has on Wednesday postponed implementation of new Tax Collected at Source rates to October 1 from July 1, 2023.
Ministry of Finance said the decision was taken to give adequate time to banks and card networks to put in place requisite IT-based solutions.
Read More: Amazon Prime Day announced, sale starts on July 15: Check out offers and other details
Government said more time has been given for implementation of revised TCS rates and for inclusion of credit card payments under the Liberalised Remittance Scheme (LRS)
Government also rolled back its decision on including transactions for overseas travel under LRS
However, there’s no change in the rate of TCS for all purposes and for overseas travel tour packages regardless of mode of payment, for amounts up to Rs 7 lakh per individual per annum.
Transactions through international credit cards while being overseas would not be counted as LRS and hence would not be subject to TCS, said the ministry.
