Niyo Global cards either from SBM or DCB, claim to be zero forex markup fees
Is there per transaction flat 5% TCS charge , which will be refunded only if you have spent less than Rs 7 Lakh on your foreign exchange transaction in that financial year?
Hey @Eric_Fernandes, Tax Collected at Source (TCS) on LRS transactions is a regulatory requirement amended under section 206C of Finance Act 2020. Kindly check out the link here: What is TCS? How does it work for the Liberalised Remittance Scheme? for better understanding.
That did not help me… its not written in an easily understandable language unfortunately.
Within a given financial year -
All transactions on Niyo global less than 7 Lakhs - No 5% TCS charge
Any transaction on Niyo global > 7 Lakhs - each transaction will have 5% TCS
Looking for a Yes/No
Hi @Eric_Fernandes, Yes, 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 the day for the cumulative international transactions. For any further clarification kindly write to us at global@goniyo.com our team will be happy to assist you better.
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What happens if I don’t have enough funds to deduct TDS?
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Hey @Sanjay24! Welcome to Niyo Community!
For Niyo DCB, if you do not have an additional 5% balance in the account, the transaction will not be processed. Similarly, for Niyo SBM, the amount gets debited as soon as you add for your next transaction.
Regards,
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I think TCS will only be deducted on transactions that exceed Rs 7 lakhs in one FY. If you have just spent Rs 50k TCS isn’t going to be charged on any of those transactions. Am I right in my understanding?
Continuing the discussion from Niyo Global 5% TCS per transaction:
What if i do multiple international transactions on a day but amount haven’t exceeded 7 lakhs. In that condition would i have to pay the 5% tcs on every transaction or would i have excempted from the deduction as it not exceed the 7 lakh limit?
Hey @VIRAL_BORSALLIWALA! Welcome to Niyo Community!
If you are holding a Niyo Global SBM account, you’ll be charged with TCS only after you exceed the spending limit of 7 lakhs. If not, there will not be any TCS charges.