‘Twitter is new Jantar Mantar for protests,' say netizens as govt blinks on 20% TCS rule

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‘Twitter is new Jantar Mantar for protests,' say netizens as govt blinks on 20% TCS rule

On Friday, the Finance Ministry clarified that any payments by an individual using their international Debit or Credit cards up to Rs 7 lakh per financial year will be excluded from the Liberalised Remittance Scheme (LRS) limits.

The ministry also stated that existing beneficial TCS treatment for education and health payments will also continue.

20% TCS on international credit card: A day after the Centre declared that payments up to Rs 7 lakhs per financial year by international debit or credit cards will be exempted from the Liberalised Remittance Scheme (LRS) limits, Twitter got flooded with a wave of reactions.

Users, while expressing their thoughts and opinions about the tax tweak, said that the government was forced to tweak rules imposing 20 per cent TCS on international transactions via credit cards after a widespread social media uproar.

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This tax rate revision assumes significance as there were concerns among taxpayers over the imposition of 20 per cent TCS on International Credit Card and Debit Card transactions under the Liberalised Remittance Scheme (LRS) from July 1. The Friday clarification said that there will be no TCS on small transactions up to Rs 7 lakh is a big relief for taxpayers.

"Concerns have been raised about the applicability of Tax Collection at Source (TCS) to small transactions under the Liberalized Remittance Scheme (LRS) from July 1, 2023. To avoid any procedural ambiguity, it has been decided that any payments by an individual using their international Debit or Credit cards up to Rs 7 lakh per financial year will be excluded from the LRS limits and hence, will not attract any TCS,” the Finance Ministry said in a statement.

"Existing beneficial TCS treatment for education and health payments will also continue," the statement added.

The May 16 notification raised heckles among Twitter users who went as far as calling the tax revision rule as "tax terrorism".

On Friday, after the Finance Ministry clarified the Rs 7 lakh, Twitter users again shared their reactions. While some said it is an eyewash, some termed it as a major relief.

Here are some Twitter reactions:

So the Govt rolls back it’s 20% TCS on International credit card spending till ₹ 7 lakhs. Twitter is the new Jantar Mantar for protests !
— Basant Maheshwari (@BMTheEquityDesk) May 19, 2023

Finally, after being kicked in its butt, Govt. clarifies. "Govt clarifies: No TCS to be deducted on overseas spending of up to Rs 7 lakh in a year by credit or debit cards" via @Resonant_News Rs. 7 Lakhs per year for foreign travel probably is low at the prevailing exchange rates https://t.co/ZFpzkTPO2r
— Chittukuruvi (@chittukuruvi4) May 19, 2023

In any case despite the govt’s climb down and Rs 7 lakh limit, the 20% rate on TCS is too high. Govt should partially roll back that also and reduce TCS to 5%. Then we all can forget this and go back to IPL or US debt ceiling or Sudha Murthy jokes.
— athreya (@athreya49) May 19, 2023

Honest question on the #TCSTax from experts ! Hypothetically if someone spends 10 lakhs on their Credit or Debit Card abroad... is the -#TCSTax levied on the balance (in this case the ₹ 3lakhs) or on the complete amount ? Considering no TCS to be deducted upto Rs 7 lakh ! https://t.co/CZzpLJuBlN
— Tehseen Poonawalla Official 🇮🇳 (@tehseenp) May 19, 2023

@sambitswaraj ..so poor communication and sometimes so poor laws/execution (like the TCS and now some babu has stupidly decided the limit is Rs 7 lakh..and as usual @nsitharaman is missing in action as babus run riot)!! Any surprise why BJP is losing the faith of middle class https://t.co/3urG2xX4EU
— Kharavela (@toshali2023) May 19, 2023

Following the May 16 notification, which proposed the imposition of 20 per cent TCS on international credit card spending, Twitterati shared some of their concerns, opinion and far-reaching implications of the new rule.

20% TCS on credit card use outside India.

The biggest risk to India story is Finance think tank. Keep changing taxes n increase burden on the same 4-5 cr people who pay tax -thru STT, capital gain, dividend, TCS, angel tax, fringe benefit tax etc

Speed breaker mindset- instead…
— Gurmeet Chadha (@connectgurmeet) May 18, 2023

Why is @FinMinIndia bent on harassing all taxpayers and citizens? If some Pl mark ‘some’ not all, misuse,have a 2% TCS to trace,why 20% for all? Why cause pain to all honest citizens too? @nsitharaman is this ease of life? @narendramodi Sir pl intervene. Living is more difficult https://t.co/FBOyRXMsaC

— Mohandas Pai (@TVMohandasPai) May 18, 2023

20% TCS is an extremely bad move

Middle class in India already pay highest tax- Max 30+7 % direct tax plus 5–28 % GST plus cess .

Even after all this, do we get subsidized quality Education? No. Healthcare? No. Better roads? No. Good infra? Heck we pay taxes upto 40% on cars… pic.twitter.com/L5eaamAzop
— Anuradha Tiwari (@talk2anuradha) May 19, 2023

Also read: India to take action against Google for antitrust breach: MoS IT

Published on: May 20, 2023, 3:19 PM IST

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‘Twitter is new Jantar Mantar for protests,' say netizens as govt blinks on 20% TCS rule

On Friday, the Finance Ministry clarified that any payments by an individual using their international Debit or Credit cards up to Rs 7 lakh per financial year will be excluded from the Liberalised Remittance Scheme (LRS) limits.

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