IGI Logo

Below the Expert Inputs on UPI Transactions in India by Dhruv Chopra, Managing Partner at Dewan P N Chopra & Co

As you may be aware, UPI payments have become one of the most preferred modes of payment in recent times. With its rising popularity, many features have been added to UPI to improve users' experience. UPI payments became available at the Eiffel Tower in Paris in 2024, marking its entry into France. This expansion adds to existing acceptance in Nepal, Qatar, Bhutan, Mauritius, Singapore, Sri Lanka, and the UAE.
 

Our expert Dhruv Chopra, Managing Partner at Dewan P N Chopra & Co. has shared the inputs below on this aspect talking about the TCS regulations for foreign remittances under the Liberalized Remittance Scheme (LRS). Please have a look and let us know if you wish to plan the story. 

Dhruv Chopra, Managing Partner at Dewan P N Chopra & Co.
The Government of India has revised the Tax Collected at Source (TCS) regulations for foreign remittances under the Liberalized Remittance Scheme (LRS), effective from October 1, 2023. TCS at 20% will now apply to all foreign remittances, including foreign payments made via credit and debit cards by resident individuals, if the total annual remittance exceeds ?7 lakh per individual in a financial year. This TCS covers all categories of LRS payments, except payments made using an international credit card during a visit outside India. However, differential TCS rates apply to specified remittances such as education, medical treatment, and overseas tour packages.

Below is a summary of the applicable TCS rates: Nature of Payment TCS Rate (w.e.f. 01.10.2023)

• LRS for Education (financed by loan) Nil up to Rs 7 lakh; 0.5% above Rs 7 lakh
• LRS for Medical Treatment/Education Nil up to Rs 7 lakh; 5% above Rs 7 lakh
• LRS for Other Purposes Nil up to Rs 7 lakh; 20% above Rs 7 lakh
• Overseas Tour Program Package 5% up to Rs 7 lakh; 20% above Rs 7 lakh

Resident Individuals making foreign remittances or payments as mentioned above are advised to review these revised guidelines to ensure due compliance.

Above views are of the author and not of the website kindly read disclaimer