No tax collection at source on overseas credit card spends

INTERNATIONAL credit card spends under the liberalised remittance scheme (LRS) would not subject to tax collection at source (TCS) for now, finance ministry said Wednesday.

- MONIKA YADAV

Last month, the Centre had announced inclusion of international credit card payments under the liberalised remittance scheme (LRS).

“To give adequate time to banks and card networks to put in place requisite IT-based solutions, the government has decided to postpone the implementation of its May 16, 2023, e-gazette notification. This would mean that transactions through international credit cards while being overseas would not be counted as LRS and hence would not be subject to TCS,” the ministry said.