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TCS on International Spends: Latest Update for Indians using Niyo Cards
Stay updated on rules for TCS (Tax Collected at Source) on international spends for Indians. What it means for Niyo card users, rates, exemptions & how to comply.
TCS on International Spends: Niyo Card Updates for Indians
At Niyo, we want to make sure you’re up to speed with the changes in TCS, so we’ve simplified the information for your easy understanding.
As of April 2025, there have been some important TCS updates for Niyo users. Here’s what you need to know:
| Card Variant | TCS Limit up to ₹10 lakh | TCS Limit above ₹10 lakh | TCS Rate |
|---|---|---|---|
| DCB Niyo Debit Card | No TCS* | TCS applies | 20% |
| Niyo SBM Debit Card | No TCS | Education (financed by a loan) | 0% |
| No TCS | Medical treatment/ education (not financed by loan) | 5% | |
| 5% (Overseas tour package) | Overseas tour package | 20% | |
| No TCS | Other purposes | 20% | |
| Niyo SBM Credit Card | No TCS | No TCS | NA |
Note: If you have spent less than ₹10 lakh in a financial year, your TCS refund will be processed within 2-4 hrs. Otherwise, you can claim your refund when you file your income tax returns (ITR).
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 cards
DCB Niyo Debit Card
No TCS up to ₹10 lakh*
As per the latest tax rules, there is NO TCS on international spends up to ₹10 lakh per financial year.
Note: A 20% TCS is deducted upfront for certain international transactions made with your DCB Niyo Debit Card.
Just a heads up!
If you make international transactions from 1 am to 3 am IST,* there’ll be a 20% TCS deduction upfront. But don’t worry, the amount will be promptly refunded within 48 hours, no matter how much you’ve spent throughout the financial year.
For international spends between ₹9.75 lakh and ₹10 lakh, 20% TCS will be deducted upfront and will be refunded in 1 working day if your cumulative international spends across all your debit cards and remittances are within the ₹10 lakh limit.
If your overall international spending in a financial year (FY) is less than ₹10 lakh, any TCS deducted is reversed within 1 hour. In exceptional cases, the refund may take up to 2 working days.
Your total international spends made across all your debit cards, remittances, etc. against your PAN, are considered when calculating the ₹10 lakh limit for zero TCS.
When your international spending in an FY crosses the ₹10 lakh limit, a 20% TCS applies only to the amount spent beyond the ₹10 lakh limit. You can claim a TCS refund for this amount while filing your Income Tax Returns (ITR). Know More
Niyo SBM Debit Card
No TCS up to ₹10 lakh
As per the latest tax rules, starting 1st April 2025, there is NO TCS on international transactions up to ₹10 lakh per financial year.
Your total international transactions made across all your debit cards, remittances, etc., against your PAN, are considered when calculating the ₹10 lakh limit for zero TCS.
When your international spending in an FY crosses the ₹10 lakh limit, TCS applies only to the amount spent beyond the ₹10 lakh limit. The applicable TCS, as per the purpose of your international transaction, will be levied in real time at the moment of the transaction. Please ensure your account has sufficient funds, including taxes and charges, to avoid transaction failures.
Niyo SBM Credit Card
No TCS on international spends
Good news for Niyo SBM Credit Card users! You can continue using your credit card for international spends without paying any TCS.
International tour and travel packages
Spending below ₹10 lakh: A 5% TCS rate applies to any international tour or travel package booked through an Indian Tour Operator.
Spending above ₹10 lakh: 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 ₹10 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 debit card, your combined spending limit for the entire financial year is ₹14 lakh. 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 Cards to avoid TCS
- If you’re travelling with friends or family, you can use multiple Niyo Debit Cards to combine your spending and stay under the TCS threshold.
- Use the Niyo Credit Card for international spends if you anticipate spending more than ₹10 lakh.
- Keep track of your total international spending on your Niyo Debit Card to ensure that it does not exceed ₹10 lakh.
Key Takeaways
TCS is a simple way to manage your taxes in advance. With Niyo debit cards, you can enjoy international spends up to ₹10 lakh without any TCS deduction. Even if your international spending exceeds ₹10 lakh in a financial year, the TCS refund can be claimed while filing your income tax return.
