Q. The Union Budget 2023-24 hiked Tax Collected at Source (TCS) rates to 20 percent on overseas tour packages and funds remitted under liberalised remittance scheme (LRS). In this context, consider the following statements:
1.TCS is a tax that is directly collected by the government.
2.20% TCS is not be applicable on healthcare and education sector.
3.The 20% TCS will increase the cost of using an international credit card..
Which of the statements given above are correct?
Statement 1 is incorrect. TCS is a tax that is collected by a third party, such as a bank or credit card company, on behalf of the government.
Statement 2 and 3 are correct. This 20% TCS is not be applicable on healthcare and education sector. The 20% TCS will increase the cost of using an international credit card because earlier it was 5%.
Source: The Times of India