Tax Collected at Source (TCS) is the tax payable by a seller that they collect from the buyer at the time of sale. This is applicable for international ATM, ECOM, and POS transactions. In a given financial year, when your international transactions exceed ₹7 lakhs, a fee of 5% is charged for the incremental amount exceeding ₹7 lakhs. For multiple international transactions made in a day, TCS is deducted only once a day at the end of day for the cumulative international transactions.
I understand that this is Government Law and nobody can change this. But I want to understand how this card is suitable for students who want to pay their fees ? In only one transaction, our limit of 7 lakh will be over!? Then from there on we will have to keep 5% extra all the time in the account ?