Page 12 - Credit Card

As credit card transactions rise in India, debit cards take a backseat

Recent data from the Reserve Bank of India (RBI) shows that out of 25 crore card transactions in the month of April this year, 22 crore were credit card transactions

Clarification on applicability of TCS on overseas credit card spends soon

The tax department will soon come out with a clarification in the form of FAQs to distinguish between expenses incurred on personal visits and business trips for levy of 20 per cent TCS on overseas credit card spends from July 1, a senior official said on Friday. Following a notification which brought credit card spends under LRS, concerns have been raised on how personal and business expenses would be segregated by the banks who will be required to deduct the TCS on such expenses. Finance ministry joint secretary (Tax Policy and Legislation) Raman Chopra said the government would soon issue a clarification on the mode of applicability of the TCS provision. "There has been a lot of discussion with the finance secretary, the revenue secretary and the finance minister. We are certainly going to come up with some clarifications and FAQs on that and that will clarify the position beyond any reasonable doubt in what manner TCS is to be collected and to what extent threshold is available

Shoppers need not stop: Dynamics of in-store payments is being rewritten

The dynamics of in-store payments are fast changing, and this will impact retailing in a big way

SBI penalised for sending bills to man despite credit card's expiry

A Delhi consumer forum has directed the SBI Cards & Payments Services Pvt. Ltd. to pay Rs 2 lakh to a person here for sending him bill even after his card's expiry and blacklisting him for non-payment of the charges. The New Delhi District Consumer Disputes Redressal Forum comprising its president Monika A Srivastava and members Kiran Kausal and Umesh Kumar Tyagi directed the company to pay the amount to M J Anthony, a former journalist, for "deficiency in providing services". The forum noted that the company had blacklisted him in the CIBIL system of the wilful defaulters maintained by the RBI, which resulted in the rejection of his applications for credit cards from another bank where he had maintained regular account for nearly two decades. "This Commission is of the view that the SBI Cards & Payments Services Pvt. Ltd. has been deficient in providing services to the complainant and though the damage/loss occasioned to the complainant in terms of credit rating cannot be ...

Clarity needed on TCS levy on credit card payments, says tax experts

Tax experts on Monday sought clarity on the applicability of TCS on foreign payments of over Rs 7 lakh made via credit cards, saying it would be difficult for the I-T department to differentiate between personal and business visits. The government on May 16 issued a notification under Foreign Exchange Management Act (FEMA), which effectively imposed a 20 per cent TCS on international credit cards (ICC) spends in foreign exchange. ICC spending was brought under the RBI's liberalised remittance scheme (LRS). However, expenses incurred by an employee on a business visit when such expenses are borne by the employer, do not come under LRS and hence were exempt from 20 per cent Tax Collected at Source (TCS). Amid backlash from various sections of people, the government on May 19 decided to exempt ICC payments up to Rs 7 lakh a year from TCS. Experts, however, feel still there are grey areas which are needed to be addressed by the Income Tax department. Nangia Andersen India, Partner, Ne

TMS Ep437: Tesla in India, TCS on int'l credit card, markets, angel's share

Can Tesla finally come to India? How will TCS on credit card spend abroad affect you? Will markets turn around in the short term? What is an angel's share? All answers here

The mystery of 20% TCS

There is a general principle that fiscal policies should be transparent and have obvious motives

JCB partners with NPCI to offer 40% cashback for RuPay JCB cardholders

All RuPay JCB Debit & Credit Cardholders will be offered 40% cashback on in-store purchases in the UAE, Thailand, Malaysia and Spain

Your credit card payments overseas will attract a 20% TCS from July 1

For every $100 you spend abroad using your international credit card, you will need to fork out $120 and then claim it when you file your tax return

Credit card expenditure in forex to come under RBI's remittance scheme

Spending in foreign exchange through international credit cards will be covered under the RBI's liberalised remittance scheme (LRS), under which a resident can remit money abroad up to a maximum of USD 2.50 lakh per annum without the authorisation of the Reserve Bank, as per a Finance Ministry notification. The ministry on May 16 notified the Foreign Exchange Management (Current Account Transactions) (Amendment) Rules, 2023, to include international credit card payments in the LRS. Any remittance beyond USD 2.5 lakh or its equivalent in foreign currency would require approval from the RBI. Earlier, the usage of international credit cards (ICCs) for making payments for fulfilling expenses during travel outside India was not included in the LRS limit. According to the notification, the Finance Ministry, in consultation with the RBI, has omitted Rule 7 of the Foreign Exchange Management (Current Account Transactions) Rules, 2000, thus effectively including forex spending through ...

Citigroup plans to debut new credit card for use with multiple retailers

It puts customers in control of how they want to finance purchases, Kartik Mani, chief executive officer of the bank's retail-services division, said in an interview

Order to stop loan re-payment via credit card good for customers: Insurers

Insurers said it was never in the interest of the customer to repay the loan by borrowing on a credit card and paying much higher interest rates on the outstanding balance on the card

AU Bank's credit card business will break even in FY25: CEO Sanjay Agarwal

Banking will completely shift from brick-and-mortar to online in some 10 years, he says

Home loan demand declines, special interest rates to continue

CMI findings show a marked increase in demand for credit cards and personal loans, indicating growing adoption of consumption-led credit products that provide convenience and liquidity

Top card cos to go live with UPI-linked RuPay credit card feature by June

The feature seeks to include 50 million UPI merchants in the formal credit economy and drive consumption in a big way

Credit card spends touch all-time high of Rs 1.37 trillion in March

As per latest data, almost 63 per cent of the spends or a little over Rs 86,000 crore came from e-commerce while the rest was at point of sales (PoS) terminals

A powerful tool for democratising credit access

Credit card growth does not conflict with real-time payment systems, but complements them and offers consumers more payment options

Statsguru: Six charts explain the UPI's emerging growth challenge

There are more than 7 billion transactions every month using the payment system - more than five transactions for every man, woman and child in the country

Apple to roll out buy now, pay later service, with guardrails this spring

Apple is getting into the buy now, pay later space with a few tweaks to the existing model including no option to pay with a credit card. The company will roll out the product to some consumers this spring, and will begin reporting the loans to credit bureaus in the fall. Here's what you need to know. Since the start of the pandemic, the option to buy now, pay later has skyrocketed in popularity, especially among young and low-income consumers who may not have ready access to traditional credit. If you shop online for clothes or furniture, sneakers or concert tickets, you've seen the option at checkout to break the cost into smaller installments over time. Companies like Afterpay, Affirm, Klarna, and Paypal already offer the service, typically with late fees for missed payments and the option to use a credit card or bank account to make installment payments. Apple's version, which is integrated with Apple Pay and facilitated by MasterCard, will require the consumer use a debit car

Credit card loans aid over 182,000 street vendors, jobless in Rajasthan

The scheme started in August 2021 to provide support to youths who lost their livelihood owing to the pandemic