If you're an Indian citizen spending money outside the country, you may have to pay a Tax Collection at Source (TCS) based on the category of the expense, as outlined in our tax laws. However, with the new budget for 2023, the TCS rate can now go up to 20%

which is a significant increase from the previous rate of 5% or less, depending on the type of service or expense. which will be applicable from 1st October 2023.

Lets understand with a Example ⬇️

Mr. X is organizing a family trip to the USA, and he has budgeted Rs 50 lakhs for it. In order to book the holiday package through a travel agent, he will need to provide an additional Rs. 10 lakhs, which is 20 percent of the initial Rs. 50 lakhs budget.

So, the total cost of the travel package will now be Rs. 60 lakhs, and this includes any applicable taxes and other fees. Mr. X will be required to pay the total of Rs. 60 lakhs (Rs. 50 lakhs plus Rs. 10 lakhs) along with the Goods and Services Tax (GST) and any other fees.

if applicable, at the time of booking with the travel agent.

Source : Taxguru , You can read full details in their website

Many YouTubers and individuals on social media are discussing the possibility of a 20% Tax Collected at Source (TCS) in the context of #cryptocurrency However, as of now, there hasn't been any official clarification or specific mention of this tax.

Therefore, we can wait for official information or guidance regarding this matter. It's important to note that I am not a Chartered Accountant (CA) or a tax advisor. I'm simply sharing the information which I've gathered from various tax-related websites.

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