TCS on International Spends with Niyo Global: What You Need to Know
Team Niyo
Overview
TCS (Tax Collected at Source) is a way for the government to collect taxes upfront on certain transactions, including international spends. It is a small fee that is collected by the bank on behalf of the government when you spend more than a certain amount on international transactions. The good news is that you can claim the TCS amount as a credit when you file your income tax returns.
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Overview
TCS (Tax Collected at Source) is a way for the government to collect taxes upfront on certain transactions, including international spends. It is a small fee that is collected by the bank on behalf of the government when you spend more than a certain amount on international transactions. The good news is that you can claim the TCS amount as a credit when you file your income tax returns.
Team Niyo
Introduction
At Niyo Global, we want to make sure you’re up to speed with these changes, so we’ve simplified the information for your easy understanding
As of October 23rd, 2023, there have been some important TCS updates for Niyo Global users. Here’s what you need to know:
| Product | TCS Applicability below 7 lakhs | TCS Applicability above 7 lakhs | TCS Rate |
| Niyo Global Credit Card | Not Applicable | Not Applicable | N/A |
| Niyo Global Equitas Debit Card | Not Applicable | Yes | 20% |
| Niyo Global DCB Debit Card | Not Applicable* | Yes | 20% |
How to claim a TCS refund
To claim a TCS refund, you need to file your income tax return. The Income Tax Department will then process your refund claim and credit your account.
Here are the steps to claim a TCS refund:
- Gather all the necessary documents, including Form 26AS, if applicable.
- Fill up the Refund Claim Form.
- Attach all the essential documents with the Refund Claim Form.
- Submit the Refund Claim Form to the Income Tax Department.
- The Income Tax Department will process it and credit the amount to your bank account.
You can download the Refund Claim Form from the Income Tax Department’s website.
Niyo Global Cards:
Niyo Global credit card: No TCS on international spend
Good news for Niyo Global credit card users! You can continue using your credit card for international spends without paying any TCS.
Niyo Global Equitas Debit Card: No TCS upto ₹7 lakhs
You can enjoy international spends up to ₹7 lakhs on your Niyo Global debit cards without any TCS deduction.
Niyo Global DCB Debit Card: No TCS upto ₹7 lakhs*
When you use the Niyo Global DCB Debit Card, you will notice a 20% TCS deduction on every transaction. The good news is that if your spending remains under ₹7 lakhs, the deducted amount will be promptly refunded within 2-4hrs on the same day. And even if your international spending exceeds ₹7 lakhs, you can still reclaim the refund during your Income Tax Return (ITR) filing process, so there’s no need for concern.
International Tour and Travel Packages
Spending below ₹7 lakhs: A 5% TCS rate applies to any international tour or travel package booked through an Indian Tour Operator.
Spending above ₹7 lakhs: A 20% TCS rate will be applied to international tour and travel packages booked through an Indian tour operator.
TCS rate on education loan:
It’s important to note that the TCS rate on education loans is lower than the general TCS rate. The applicable TCS percentage for education loans is 0.5%. This means that if you have remitted funds abroad for education purposes using an education loan, you will be charged a TCS of 0.5% on the amount exceeding Rs 7 lakh in a financial year.
For example, if you have remitted Rs 10 lakh abroad for education purposes using an education loan, you will be charged a TCS of Rs 1,500 (3 lakh * 0.5%).
Important Note: The TCS rate applies per individual, not per card. This means that if you are traveling with friends or family and you each have a Niyo Global debit card, your combined spending limit for the entire financial year is ₹14 lakhs.
Also, TCS is not applicable to domestic spends, so you can continue to enjoy your local purchases without any TCS concerns.
Tips for using Niyo Global Cards to avoid TCS
- If you’re traveling with friends or family, you can use multiple Niyo Global Debit Cards to combine your spending and stay under the TCS threshold.
- Use the Niyo Global Credit Card for international spends if you anticipate spending more than ₹7 lakhs.
- Keep track of your total international spending on your Niyo Global Debit Card to ensure that it does not exceed ₹7 lakhs.
