New Delhi: The tax department is considering a proposal under which credit card holders will have to file a declaration with the issuer entity within a stipulated time, specifying the nature of expenses incurred in foreign currency for the purpose of TCS levy, sources said.
The I-T department is in talks with the RBI and other stakeholders to firm up a mechanism for distinguishing whether the expense is towards medical/education which attract a 5 per cent TCS or for other purposes on which a 20 per cent Tax Collection at Source (TCS) would be levied, they added. According to sources, discussions are veering around giving additional time to taxpayers for filing declaration to the credit card issuer bank specifying the nature of expenditure from July 1– the date from which the new TCS proposal will come into force.
