Big update for credit card users.
Big update for credit card users.
If you also use a credit card, then this news may shock you. The Government of India has made some changes in its rules. This change is going to have a direct impact on your pocket, so definitely read this news and know what changes the government has made in the credit card rules and how much it will affect you.
According to media reports, the Government of India has made a major change in the credit card rules. After the introduction of this new rule, 20 percent tax will have to be paid on credit card spending in any other country. In such a situation, people will have to pay a heavy price for using the credit card. After consulting the Reserve Bank of India (RBI), the central government has decided to impose tax collection at source on credit cards used abroad.
Changes to FEMA rules
The government has decided to amend the rules under the Foreign Exchange Management Act (FEMA). For this, a notification has been issued, which states that credit cards used outside India are also being included in the LRS. Under this rule, Section-7 has been removed from the Act. Under this new LRS scheme, any Indian resident can spend a maximum of $ 2.50 lakh annually on a credit card outside India. For spending more than this, he will have to take approval from RBI.
Know from when this rule will be applicable
It has been said in the notification of the government that this rule will be considered effective from 1 July 2023. It is clear from this that the use of International Credit Card on foreign visit is now going to increase the burden of your pocket. The Finance Ministry has issued a notification, according to which the TCS rate has been increased from 5 percent to 20 percent in the budget for the financial year 2023-24.
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