No matter how much money people spend abroad, according to Trinamool Congress spokesperson Saket Gokhale, they will still be subject to a 20% tax that is collected at source.
Fact Check News: No matter how much money people spend abroad, according to Trinamool Congress spokesperson Saket Gokhale, they will still be subject to a 20% tax that is collected at source."The new 7 lakh exemption announced foreign transaction tax is an eyewash.
Banks cannot verify whether you have spent less than 7 lakhs a year. Ergo, you will be charged 20 per cent TCS on every transaction.
Modi government and BJP are masters at misleading people," Gokhale had said in a tweet.
Fact Check Verification: The fact check wing of the Press Information Bureau (PIB) called out this claim and said that it was false.
Claim: Banks cannot verify whether you’ve spent less than 7 lacs in a year.#PIBFactCheck
— PIB Fact Check (@PIBFactCheck) May 20, 2023
▪️ This claim is False.
▪️ Liberalised Remittance Scheme (LRS) spends of an individual are compiled & monitored by @RBI. pic.twitter.com/xcmatDKeJQ
The government on Friday had announced that no tax will be charged on overseas spending of up to Rs 7 lakh a year using debit or credit cards. Friday's announcement was a follow up to the public queries on the Centre's earlier announcement on charging TCS on all spending. "Claim:
Banks cannot verify whether you have spent less than ₹ 7 lakh in a year. This claim is false. The Liberalised Remittance Scheme (LRS) spends of an individual are compiled and monitored by the RBI (Reserve Bank of India)," PIB said in a tweet.
News Verdict: Banks cannot verify whether you have spent less than Rs 7 lakh a year.
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