Credit card payments on foreign travels likely to attract tax at source

According to the LRS, which was introduced in 2004, all resident individuals, including minors, are allowed to freely remit up to $250,000 per financial year

The finance ministry has asked the Reserve Bank of India (RBI) to look into the aspect of bringing credit card payments done during foreign tours under the central bank’s liberalised remittance scheme (LRS) so that such expenses do not escape the tax collection at source (TCS).

Moving the Finance Bill in the Lok Sabha on Friday, Finance Minister Nirmala Sitharaman said: “It has been represented that payments for foreign tours through a credit card are not being captured under the LRS and such payments escape TCS. The RBI is being requested to look into this with a view to bring