New TCS rules have kicked in: Here's what gets costlier and what remains same (2024)

FAQs

What are the new changes in TCS? ›

What is the new TCS rule in 2023? The TCS has now gone up to 20% from 5% for all remittances except those concerning education or medical treatment. Remittance is any money you send abroad. You'll still be taxed at 5% for amounts exceeding ₹7 lakhs for education and medical treatment in a foreign land.

The new TCS rule states that the TCS for foreign remittances under the Liberalised Remittance Scheme was increased frm 5% to 20% percent TCS. However, the applicability of this new TCS rule is subject to certain conditions and varies depending on the nature of payment.

You don't have to pay TCS on money transferred overseas if the amount is below INR 7 lakh, so keep the transfer amount below INR 7 lakh to avoid 20% TCS On Foreign Remittances . Remember that to avoid paying TCS this way, the total amount you send in a financial year should be below INR 7 lakh.

Latest Updates

Tax collection at source (TCS) for foreign remittances under LRS was raised from 5% to 20% in Budget 2023. Except for education and medical reasons, this will extend to international travel, sending money abroad, and other remittances. This new rule will take force on 1st July 2023.

Section 206C(1H) which is applicable to a seller to collect TCS on sale of goods came into effect from 01.10. 2020 and has the similar provisions. Hence when both TDS & TCS provisions are applicable to a same transaction, then TDS u/s 194Q would prevail over TCS u/s 206C(1H).

TCS shares rise nearly 3% as brokerages raise rating, price targets following Q1 beat. The IT major beat the Street's expectations when it comes the consolidated net profit and revenue from operations for the the quarter ended June.

According to Section 206C(1H), a seller will have to deduct TCS on sale of goods if the value of the sale goes above Rs 50,00,000 in a certain fiscal year. While receiving such payment, a TCS deduction will be applicable.

If you are planning to go on an international trip with your family, be ready to bear a higher cost upfront due to a new tax collected at source (TCS) rule. When you book, offline or online, overseas tour packages of more than Rs 7 lakh in a financial year, you have to pay TCS at 20% from October 1, 2023.

What is the TCS rule on debit cards? ›

TCS on debit cards

Once an individual's cumulative foreign currency expenses reach or exceed the threshold of INR 7 lakh within a single financial year, the TCS at the rate of 20% becomes applicable to the amounts exceeding this threshold.

When it comes to credit cards, TCS is imposed to ensure that the government receives its due tax amount at the time of the transaction. The idea is to prevent tax evasion and promote transparency in financial transactions. In the context of credit cards, TCS is primarily applicable to foreign currency transactions.

Effective from October 1, 2023. New TCS rule from next month: In the Union Budget 2023, the tax collection at source (TCS) for foreign remittances under the Liberalised Remittance Scheme (LRS) was raised from 5% to 20%. This will be applicable to international travel, sending money abroad, and other remittances.

In April 2024, TCS introduced a revised approach where quarterly variable payouts are tied to employees' office attendance. Those maintaining less than 60% attendance are ineligible for the quarterly bonus. The decision followed an earlier mandate requiring employees to work from the office five days per week.

The new policy of TCS came after the IT services company mandated a five-day work-from-office schedule. The new policy mandates the employees to maintain a minimum of 85 per cent work attendance in the office to get the quarter bonus. The company has also decided to take disciplinary action in case of non-compliance.

However, the salary for freshers joining TCS through NQT is in the range – 3.5 to 7 lakhs per annum. The Ninja roles usually have a starting salary of around 3.5 lakhs, while the Digital roles offer a higher package of around 7 lakhs initially.

Tata Consultancy Services has not announced any Bonus Issue since 2018.

Tata Consultancy Services (TCS) is reportedly planning to increase salaries by an average of 7-8% for its offsite employees and 2-4% for its onsite staffers in 2024-25. According to an exclusive report in Business Standard, high performers can expect an increment of 12-15 per cent.

Krithivasan has also created a new business unit called TCS AI. Cloud in a bid to focus on all the opportunities arising out of AI-based projects. TCS has been working on generative AI solutions but the new unit will bring a more focused approach.