From April 1st, this new tax will be levied on you!, TAX will be doubled if the PAN number is not given
The central government has given propulsion in the Finance Bill for the financial year 2020-21. In this, TCS has been imposed on foreign travel in section 206C. At the same time, if there is no PAN number, it will be double taxed.
From April 1st this new tax will be levied on you, Permanent account number ie PAN is a mandatory document for financial transactions. But, if someone says that without a PAN card you will not be able to roam abroad or you will have to pay a higher price for traveling, then will you accept the truth. What to do with a PAN card abroad? But this is true! Actually, the central government has given propulsion in the Finance Bill for the financial year 2020-21. In this, TCS has been imposed on foreign travel in section 206C. At the same time, if there is no PAN number, it will be double taxed.
Tax will be charged from 1st April
The number of people who pay income tax in the country is less, while the number of people who buy expensive cars and travel abroad is quite high. Now the government is preparing to rein in the people who do not pay income tax and spend money without fear. From April 1, the central government will impose TCS on the total package of foreign travel. The tax on foreign tour packages can bring a lot of money in the government treasury. From the beginning of the financial year 2020-21, five percent tax may have to be paid on travel abroad.
The provision in the finance bill
According to the new rules of the Finance Bill, 5 percent tax collection at source (TCS) will have to be given separately on the total package for expenses on foreign travel. At the same time, a provision is that if the taker of the tour package does not have a PAN number, he will have to pay 10% TCS on the total package. This means the tax will be double if there is no PAN number. According to government figures, 1.5 crore people pay tax in the country, while three crore people travel abroad in a year.
monitoring of Black money
According to the statistics of the Ministry of Tourism, in the current financial year 5 crore Indians can go abroad. In fact, the government is trying to monitor the use of black money in the name of foreign travel with the new system of TCS. According to tax officials, even after traveling abroad several times a year, people do not inform the government about their journey.
How much will TCS pay
If the cost of a tour package is 1 lakh rupees, then you have to pay 5000 rupees separately as TCS. The tour and travel company will charge it separately from the package. TCS money will go to the government treasury. However, the TDS amount can be claimed for a refund while filing Income Tax Return (ITR). For this, foreign travel will have to be mentioned in the ITR.
