The Central Board of Direct taxes (CBDT) has issued notification regarding the changes to the income tax rules and has expanded the scope of exemption that was previously available only to non-resident individuals under section 206(1G) of the I-T Act.
It has exempted non-resident corporate entities and firms not having a permanent establishment or a fixed place of business in India from 5% tax collected at source (TCS) on foreign remittances and tour packages, reducing their compliance burden.
As per the earlier provision, the TCS was to be deducted by domestic tour operators on money received from non-resident Indians visiting India and booking their overseas tour package from the country at the rate of 5% of Rs 7 lakh or more under the Liberalized Remittance Scheme (LRS) of RBI.
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Knowledge Source :
CBDT Directs to Complete 30% Faceless Assessment by End-June