Government imposed 20% TCS on Credit cards | Credit card TCS charge- Watch Video

Saumya JaiswarPublish Date: 21 May, 2023

Government has decided to deduct 20 per cent TCS on credit card spends abroad. In this year's budget, it was proposed to increase TCS from five per cent to 20 per cent on foreign tour packages and remittances sent abroad under the Liberalized Remittance Scheme (LRS). The new tax rate will be effective from July 1. The system of 20 per cent TCS on International Credit Cards will start from July 1. 

Travel industry experts say that this move of the government will affect overseas tour packages. Riyaz Munshi, president of the Outbound Tour Operators Association of India (OTOAI), said this would affect foreign travel as tax refunds would take time. People's funds will be blocked in TCS for one year. This will be difficult for the people. He said that the government is encouraging people to use other channels instead of credit cards. The industry had told the government in March itself that increasing TCS to 20 per cent would increase the difficulties of travelers.

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