Medical assistance may be exempted from new tax collection at source rates

An additional expenses on education might also be kept out from new rule; a detailed clarification expected to be issued this month

The new rates of tax collection at source (TCS) might not be applicable to those assisting or accompanying individuals

overseas for medical treatment and even to additional expenses for educational purposes, people familiar with the development told Business Standard.
 

A clarification in this regard will be put out this month.
 

Further, the “nature of expenses” on credit and debit cards during business visits and their tax treatment for accounting purposes may be specified, they said.
 

Budget 2023 raised the TCS rate for foreign remittances under the Liberalised Remittance Scheme (LRS) from 5 per cent to 20 per cent for select transactions.