Internet Desk. Today’s changing lifestyle has brought credit card in everyone’s pocket. In such a situation, you will also have a credit card and you will also be making many big payments from the same. But now such a rule has come about which you need to know otherwise you may get into trouble after making the payment.
Be careful when paying abroad
If you are abroad and you have paid with a credit card to buy anything there, then it will cost you dearly. The government has recently changed the Foreign Exchange Management Act rules for credit card transactions abroad. Under which if you make a payment by credit card abroad, then from July 1, a tax collected source fee of 20 percent will be charged.
This change, implemented in collaboration with the RBI, has an impact on individuals who do international transactions. According to the new rule, 20 percent TCS will now be levied on any foreign credit card purchases, except for education and medical.