Hi Niyo Community Members,
I have received an email from DCB about “RBI Tax Collection at Source” basically from 1st October, 2020, all foreign remittance transactions including debit card transactions under Liberalised Remittance Scheme (LRS) will be subject to Tax Collection at Source (TCS) under Section 206C of the Income Tax Act, 1961.
Since then on every foreign transaction, Niyo started charging 5% tax on each transaction although the spends on the Global card is very much under 7Lakhs per financial year limit.
So why I am being charged for it? Or it would be credited back in few days?
What are your thoughts on this?