🔥🔥🔥🔥🔥🔥🔥🔥🔥BREAKING: Big Changes for Investors

Starting Oct 1, 2023, a SHOCKING 20% Tax on Your Foreign Stock Investments and #crypto ?

Here's what you MUST know

👉Introduction: Starting October 1, 2023, the tax collected at source (TCS) on foreign remittances, including investments in foreign stocks, mutual funds, and #crypto , has been increased to 20% from the previous 5%.

👉 What is TCS? TCS is an additional amount collected by a seller on certain goods over the sale amount and remitted to the government.

👉 Criteria for TCS: If you're investing abroad and the amount surpasses Rs 7 lakh in a financial year, you'll be subject to this 20% TCS.

👉 Domestic Mutual Funds: If you invest in a domestic mutual fund that has exposure to foreign stocks, it won't be considered a foreign remittance under the Liberalized Remittance Scheme (LRS).Thus, it won't attract the 20% TCS.

👉Double Taxation & Currency Risk: Investing abroad can be profitable, but be aware of potential risks such as double taxation and currency fluctuations.

👉 Liberalised Remittance Scheme (LRS): Under the LRS, a 20% TCS is levied on foreign investments, regardless of the institution or method used.This TCS is non-refundable.

👉 Determining TCS applicability: If a fund primarily consists of foreign stocks, then it's subject to the 20% TCS. If it doesn't, it may escape this tax.

👉#Crypto Regulations: The future of cryptocurrency regulation in India is still uncertain.

This could have varying tax implications.

👉Brokerage Role: #Indian brokerage firms help investors adhere to Indian tax regulations.

However, the liability for TCS still rests with the investor.

👉Alternative Investments: Due to these new regulations, investors might consider tax-efficient alternatives, such as domestic mutual funds with foreign exposure, to potentially avoid the 20% TCS.

Summary: While diversifying investments abroad can be profitable, it's crucial to be informed about the taxes and regulatory environment to make the most out of your investments. #BTC #crypto2023