Credit card: Now you will have to pay tax on spending from credit card abroad, you know
The Central Government has given a big blow to the people using credit cards abroad. Now a person will have to pay a tax of 20 percent on spending in any other country with an international credit card.
After consultation with the Reserve Bank of India, the Central Government has decided to impose this tax on the people. The Modi government has now decided to impose tax collection at source on credit card usage abroad.
This type of notification has been issued by the Modi government by modifying the rules under the Foreign Exchange Management Act. Under this notification, credit card expenses outside the country are also included in LRS. At the same time, any Indian resident spending more than $ 2.50 lakh in a year abroad will have to take approval from RBI.
PC: paisa bazaar