Budget 2024: Govt to Announce Foreign Spending Over Rs 7 Lakh Under LRS, May Impose 20% Tax

Budget 2024: The focus of the Modi government has always been on increasing household items. As Finance Minister Nirmala Sitharaman will be announcing the Budget 2024-25 next week, it is expected that the government may bring the foreign credit card spending under the Liberalized Remittance Scheme or LRS to stop foreign exchange outflow. The government can announce to bring expenses of more than Rs 7 lakh from credit card abroad under LRS in the upcoming budget session. 

What is LRS?

If you are travelling abroad and spend money, then the government can work to bring that expense under the LRS. If you spend more than Rs 7 lakhs in one business year on foreign debit cards, forex cards, etc., the expenses made through credit card can be brought under 20 percent Tax Collected at Source (TCS). Under the LRS scheme of the RBI, an Indian resident can transfer up to 2.5 lakh USD in one business year outside India. Watch video to know more about this in detail.