Explained: 20% Tax On International Credit Card Transactions From July
A 20 per cent tax will be levied on all international transactions from July 1. Let's understand what has changed and how it impacts you. The tax will be collected at source, which means when you swipe a card in a foreign country, a 20% tax will be deducted. Earlier, international credit card transactions were not taxed, but they have come under the Reserve Bank of India's (RBI) liberalised remittance scheme and will be taxed at source.
