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Finance Ministry today said that any payments by an individual using their international Debit or Credit cards upto seven lakh rupees per financial year will be excluded from the Liberalized Remittance Scheme, LRS limits and will not attract any Tax Collection at Source. Concerns have been raised about the applicability of Tax Collection at Source to small transactions under the Liberalized Remittance Scheme from 1st July.
To avoid any procedural ambiguity, it has also been decided that Existing beneficial TCS treatment for education and health payments will also continue.