The I-T department is in talks with the RBI and other stakeholders to firm up a mechanism for distinguishing whether the expense is towards medical/education which attract a 5 per cent TCS
India is approaching 100 million (10 crore) credit cards. Just 4 banks account for 71% of all credit cards
Recent data from the Reserve Bank of India (RBI) shows that out of 25 crore card transactions in the month of April this year, 22 crore were credit card transactions
The tax department will soon come out with a clarification in the form of FAQs to distinguish between expenses incurred on personal visits and business trips for levy of 20 per cent TCS on overseas credit card spends from July 1, a senior official said on Friday. Following a notification which brought credit card spends under LRS, concerns have been raised on how personal and business expenses would be segregated by the banks who will be required to deduct the TCS on such expenses. Finance ministry joint secretary (Tax Policy and Legislation) Raman Chopra said the government would soon issue a clarification on the mode of applicability of the TCS provision. "There has been a lot of discussion with the finance secretary, the revenue secretary and the finance minister. We are certainly going to come up with some clarifications and FAQs on that and that will clarify the position beyond any reasonable doubt in what manner TCS is to be collected and to what extent threshold is available
The dynamics of in-store payments are fast changing, and this will impact retailing in a big way
A Delhi consumer forum has directed the SBI Cards & Payments Services Pvt. Ltd. to pay Rs 2 lakh to a person here for sending him bill even after his card's expiry and blacklisting him for non-payment of the charges. The New Delhi District Consumer Disputes Redressal Forum comprising its president Monika A Srivastava and members Kiran Kausal and Umesh Kumar Tyagi directed the company to pay the amount to M J Anthony, a former journalist, for "deficiency in providing services". The forum noted that the company had blacklisted him in the CIBIL system of the wilful defaulters maintained by the RBI, which resulted in the rejection of his applications for credit cards from another bank where he had maintained regular account for nearly two decades. "This Commission is of the view that the SBI Cards & Payments Services Pvt. Ltd. has been deficient in providing services to the complainant and though the damage/loss occasioned to the complainant in terms of credit rating cannot be ...
Tax experts on Monday sought clarity on the applicability of TCS on foreign payments of over Rs 7 lakh made via credit cards, saying it would be difficult for the I-T department to differentiate between personal and business visits. The government on May 16 issued a notification under Foreign Exchange Management Act (FEMA), which effectively imposed a 20 per cent TCS on international credit cards (ICC) spends in foreign exchange. ICC spending was brought under the RBI's liberalised remittance scheme (LRS). However, expenses incurred by an employee on a business visit when such expenses are borne by the employer, do not come under LRS and hence were exempt from 20 per cent Tax Collected at Source (TCS). Amid backlash from various sections of people, the government on May 19 decided to exempt ICC payments up to Rs 7 lakh a year from TCS. Experts, however, feel still there are grey areas which are needed to be addressed by the Income Tax department. Nangia Andersen India, Partner, Ne
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There is a general principle that fiscal policies should be transparent and have obvious motives
All RuPay JCB Debit & Credit Cardholders will be offered 40% cashback on in-store purchases in the UAE, Thailand, Malaysia and Spain
For every $100 you spend abroad using your international credit card, you will need to fork out $120 and then claim it when you file your tax return
Spending in foreign exchange through international credit cards will be covered under the RBI's liberalised remittance scheme (LRS), under which a resident can remit money abroad up to a maximum of USD 2.50 lakh per annum without the authorisation of the Reserve Bank, as per a Finance Ministry notification. The ministry on May 16 notified the Foreign Exchange Management (Current Account Transactions) (Amendment) Rules, 2023, to include international credit card payments in the LRS. Any remittance beyond USD 2.5 lakh or its equivalent in foreign currency would require approval from the RBI. Earlier, the usage of international credit cards (ICCs) for making payments for fulfilling expenses during travel outside India was not included in the LRS limit. According to the notification, the Finance Ministry, in consultation with the RBI, has omitted Rule 7 of the Foreign Exchange Management (Current Account Transactions) Rules, 2000, thus effectively including forex spending through ...
It puts customers in control of how they want to finance purchases, Kartik Mani, chief executive officer of the bank's retail-services division, said in an interview
Insurers said it was never in the interest of the customer to repay the loan by borrowing on a credit card and paying much higher interest rates on the outstanding balance on the card
Banking will completely shift from brick-and-mortar to online in some 10 years, he says
CMI findings show a marked increase in demand for credit cards and personal loans, indicating growing adoption of consumption-led credit products that provide convenience and liquidity
The feature seeks to include 50 million UPI merchants in the formal credit economy and drive consumption in a big way
As per latest data, almost 63 per cent of the spends or a little over Rs 86,000 crore came from e-commerce while the rest was at point of sales (PoS) terminals
Credit card growth does not conflict with real-time payment systems, but complements them and offers consumers more payment options
There are more than 7 billion transactions every month using the payment system - more than five transactions for every man, woman and child in the country