Aakansha Monga Instagram – TCS – going to ruin your travel plans?
NOT AT ALL! Read on!
Alert! The TCS tax rules are changed starting Oct ‘23:
– For a ₹9L family trip, TCS could be ₹75K under new rules, up from ₹45K!
Stay ahead with these tips:
1. **Split Costs**: Allocate trip expenses among family to keep each person’s cost below ₹7L.
2. **Book Wisely**: A ‘tour package’ combines costs and triggers TCS. Book flights and hotels separately to manage expenses within the TCS threshold.
3. **Credit Savvy**: International credit cards might not incur TCS—double-check with your bank.
4. **Claim Your Tax Back**: If you’ve paid TCS, you can claim it as a tax refund. Just submit your travel documents and TCS receipts when filing your tax returns.
To illustrate:
– Old TCS: 5% of ₹9L = ₹45K
– New TCS: 5% on ₹7L 20% on remaining ₹2L = ₹75K
Tour Package vs Separate Booking:
– Tour Package: All travel services billed together, often exceeding the ₹7L limit.
– Separate Booking: Each service is billed individually, easier to keep under ₹7L.
Travel smart, not hard! 🛫 and follow us for more travel/finance tips 🙂 | Posted on 05/Nov/2023 18:58:24
