TL;DR: Your credit card payments will be subject to a 20% Tax Collected at Source (TCS) now.
Earlier this was 5%. But, from 1st July 2023 here’s what’s going to happen:
- Investing overseas, travelling abroad, buying foreign currency, gifts, lending loans to relatives abroad will now be taxed at 20% instead of 5%.
- Exceptions to this will be education and medical expenses.
- The reason for this move - Many people were making high-value remittances abroad but their tax returns didn’t reflect this.