In this article, we are going to talk about a totally new topic means this article going to be about a recent new law which has been established. We are going to talk about how the TCS is going to impact students and foreign travel. TCS is now going to be in effect from 1st October 2023, Sunday. Now there are some new rules regarding the TaxCollection at Source (TCS0 on Liberalised Remittance Scheme (LRS) and now TCS new rules are also established on the purchase of overseastour program package. Now we are going to learn about its motive and how it is going to affect.
From now onwards, there are going to be new rules of TaxCollection at Source (TCS) which have been now already established from today. The new TCS rules are established on the Liberalised Remittance Scheme (LRS) and it will also be applicable to the purchase of an overseas tour program package. Totally Rs. 7 lakhs per financial year per person is going to be restored for the TCS on every single category of the LRS payments via every single mode of payment. As per these new TCS rules, the Co-founder & CTO at Niyo, Virender Bisht has explained these new rules. To know more about the new TCS rate scroll down to the next paragraph.
The well-known personality Virender Bisht who is mostly recognised as the CTO and co-founder of NIyo has explained about this new TCS rules. In a recent interview, he explained everything about the new TCS rate and he also explained how it is going to impact the financing of education and how it is going to impact buying international travel packages. Now as per the new rate, the Education financed by loans up to Rs 7 lakh is going to be 0%, and above Rs 7 lakh it is going to be 0.50%. Education not financed by loan/medical treatment up to Rs. 7 lakh is going to be at 0% and above Rs. 7 lakh it is going to be 5%. And on personal expenses while studying abroad of up to Rs 7 lakh it is going to be 0% and above Rs. 7 lakh it is going to be 20%.
According to the central government, the remittances for education include, remittance for the purchase of the tickets of the student for the travel between and education country. Tuition and other fees are going to be paid to the educational institute and it is also going to include everyday expenses like transport, food, health services, etc.