I see that NiyoX card also comes with Zero Forex Markup.
I wanted to know what’s the limit till its zero forex markup. Eg. For Niyo Global, After 7Lakh in a year it’s no longer Zero Forex Markup as per DCB Bank rules.
What’s the limit for Equitas NiyoX?
Hey @Preetish_HS! Welcome to Niyo Community!
Yes, NiyoX offers 0 forex mark-up charges for international transactions just like Niyo Global by SBM and Niyo Global by DCB. However, currently, the onboarding for Niyo Global by DCB is on-hold.
Even after the 7 lakh annual limit, all these 3 products still offer 0 forex mark-up. However, TCS (Tax Collected at Source) will be charged for transactions above 7 lakh by the respective partnered banks.
WHAT IS TCS - Tax Collected at Source?
The Finance Act, 2020 amended Section 206C of the Income Tax Act,1961, and introduced tax collection at source (TCS) on foreign remittance under LRS subject to the applicable threshold limit. TCS at the rate of 5% shall be collected on foreign remittance under LRS exceeding INR 7 Lakh during the financial year. TCS at the rate of 0.50% shall be collected on foreign remittance under LRS if the amount being remitted is towards education abroad and is out of a loan obtained from any financial institution in India as defined under Section 80E of the Income Tax Act. The said amended income tax provisions shall be applicable from 1st October 2020.
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