New Delhi: If you are planning to go abroad after April or then, then tell that it may be more expensive for you. International travel can be costly from April 1, 2020. It is to be noted that purchasing foreign tour packages will now increase your total expenses. You will be responsible for Tax Collection at Sort (TCS) for buying foreign travel packages or for buying foreign currency above Rs 7 lakh. The government has decided to implement TCS for sending money abroad and selling foreign tour packages in the Budget 2020. For this it is proposed to amend section 206C. According to the new rules, TCS will have to be paid separately as 5% of the total amount of the package.
One more important thing is that if you do not have a PAN card, then you have to pay 10 but not 10% of the total amount of the package as TCS.
Note that if your tour package is 1 lakh rupees, then the company from which you are buying the package will charge you 5000 rupees (5 percent of the blunt package) separately as TCS. This amount will not be deposited in the account of the government but of the company. However, it is not that you cannot claim this amount. You can claim this amount while filling ITR. But for this you will have to disclose your travel abroad in ITR. You will not be able to claim without mentioning the journey.
What is the purpose of government
This step of the government is to curb black money. According to tax officials, the tax payers do not tell the government about their visits despite traveling abroad several times a year. But with the new rules, the government will now keep an eye on every person traveling abroad. According to the statistics of the Ministry of Tourism, about 5 crore people are estimated to travel abroad in the financial year 2019-20. The new rules will make it easier to monitor the use of black money in the name of traveling abroad.
What will be the meaning of foreign tour package
Foreign tour program package shall mean any tour package that relates to travel to a country or countries outside India. As far as expenses are concerned, this will include expenditure incurred on travel or hotel stay or lodging or any other similar expenses. This will affect those studying abroad or going on holidays abroad. Their economic expenditure will increase.