TCS stands for Tax Collected at Source. It is a system of tax collection in India where a certain percentage of tax is collected at the source of income, rather than from the taxpayer directly. TCS is applicable on a variety of transactions, including international transactions on debit cards. To know more about the TCS rates by Ministry of Finance, click here: https://bit.ly/TCS-MoF
The following table shows the TCS rates on international transactions applicable from 1st October 2023:
Note: The TCS deducted by the banks can be adjusted against the tax payable while filing income tax returns (ITR) and hence refundable. In simpler words, TCS is the tax which you have paid but you were not actually liable to pay. While filing your taxes, your total tax liability is calculated and total taxes paid are calculated and excess taxes paid are refunded along with interest.
The TCS deduction is applicable for the financial year and the individual limit is reset at the beginning of every financial year.