International Transaction through Cards : TCS and LRS Guidelines
In terms of the amendment to Section 206C of the Income Tax Act, 1961, (Act), Authorized Dealers are liable to collect Tax Collected at Source (TCS) on transactions under Liberalised Remittance Scheme (LRS). As per the revised provisions, the following card-based transactions are also considered as remittances under LRS, and hence, TCS is applicable on eligible cases w.e.f. 01.10.2020:
a. International transactions through Debit Cards (including Dynamic Currency Conversion Transactions).
b. Load / reload transactions on State Bank Foreign Travel Cards (SBFTC) under LRS.
Applicability: Under the Liberalised Remittance Scheme (LRS), the Bank is required to collect TCS at the rate of 5% on the aggregate remittance amount exceeding Rs. 7 lakhs during a Financial Year.
PAN/Aadhaar not available*
LRS-Remittances out of India
*PAN (Permanent Account Number issued by Income Tax Dept.) is a mandatory document for undertaking any transaction under LRS, in the absence of which, International usage facility in your Debit Card will be withdrawn