Ministry of Finance has issued Clarification regarding applicability of Tax Collection at Source to small Debit/Credit Transactions under Liberalized Remittance Scheme (LRS) from July 1, 2023. To avoid any procedural ambiguity, it has been decided that any payments by an individual using their international Debit or Credit cards upto Rs 7 lakh per financial year will be excluded from the LRS limits and hence, will not attract any TCS.
