Categories

Your Foreign Holiday Trips Will Get Costlier From July

Your Foreign Holiday Trips Will Get Costlier From July, TCS from 5% to 20% on an overseas tour

In the Union Budget 2023-24, the government has proposed to increase the tax collected at source or TCS for overseas tour packages to 20%

Are you planning for a foreign voyage to break away from the monotony of your everyday routine? Be aware that it may make a big dent in your pocket.

In the Union Budget 2023-24, the government has proposed to hike the tax collected at source (TCS) from five per cent to 20 per cent on overseas tour packages. The government modified Section 206C of the Income-tax, Act, 1961, to levy higher TCS on overseas package tours.

The proposal has been mooted on the assumption that people make high-value remittances, but tax returns do not reflect the proportionate income tax payment.

The move could potentially impact international travel from India.

Funds exceeding Rs 7 lakh sent out of India under the Reserve Bank of India’s (RBI) Liberalised Remittance Scheme (LRS), 20 per cent TCS will apply from July 1, 2023.

TCS is an extra amount collected as tax by a seller of specified goods from the buyer at the time of sale over and above the sale amount and is remitted to the government account.

As per the rules, sellers must collect a specified percentage of tax from customers at the time of receipt of the amount or during debiting the buyer’s account, whichever is earlier. Section 206C of the Income-tax, Act mentions the goods on which tax is collected from the buyers.

Finance Secretary T.V. Somanathan told the media the measures taken based on information that people make high-value remittances, but their tax returns do not reflect proportionate income tax payments.

Experts say the government’s view on TCS has been to reduce tax avoidance by high-net-worth individuals. Says Rajesh Gandhi, Partner, Deloitte India: “TCS rate on any remittances under LRS scheme except for education and medical purposes has been steeply increased to 20 per cent. While the introduction of a five per cent TCS was understandable since it would enable the government to monitor offshore payments. Increasing the rate will create cash flow issues for individuals since the TCS is on expenditure, not income. This could discourage the use of the LRS route.”

“The steep increase proposed to the TCS rate on foreign remittances could potentially cause cash flow constraints in some cases as the taxpayer would effectively have to upfront a large part of their annual tax outflows in these cases. Though that was considered from an administrative reform standpoint, this move ought to help widen the tax base and prompt increased voluntary compliances in hitherto untapped cases,” says Sumit Singhania, Partner, Deloitte India.

What It Means For You

Experts say the TCS increase in overseas travel is aimed at increasing domestic travel in India. This is a disappointing move for agents dealing with international tours. However, there would be an increase in the number of domestic tourists, and inbound tourism is likely to see a boom.

Suneel Dasari, founder and CEO of @ EZTax.in, an online income tax filing portal, says the Budget 2023 proposal to raise the TCS on overseas tours is a difficult decision, all in the name of encouraging domestic tourism.

“The proposed changes may impact businesses more aligned with travel packages, as consumers may be hesitant to spend extra through TCS, even if the money will be returned in the form of TCS credit when filing income tax,” says Dasari.

“Today, overseas tour operators and travel companies are hit hard by COVID-19: the depreciated rupee against the dollar and the 20 per cent TCS that travellers must deposit. The silver line in the budget is not increasing the rate of TCS from 0.5 per cent for any education (either as a loan from financial institutions or otherwise) or medical treatment outside India,” he adds. This move would also cause resentment among middle-class travelers, as it would shoot up their overseas travel budget. It is likely to impact students aspiring for foreign education, as the 20 per cent on all residual remittances would mean foreign remittance for education and maintenance will likely get costlier. This would also affect people looking to invest in overseas stocks.

To book international packages: International Packages
Categories

Discovering Kerala: A Guide

Explore God’s Own Country and its Serene Backwaters, Scenic Hill Stations, and Delicious Cuisine

Discovering Kerala: A Guide to the Best Time to Visit, Places to See, Food to Try, and Transport Options

Kerala, also known as “God’s Own Country,” is a beautiful state located in the southern part of India. With its serene backwaters, lush green hills, stunning beaches, and rich cultural heritage, Kerala is a must-visit destination for anyone traveling to India. Here’s a guide to planning your trip to Kerala:

Best Time to Visit Kerala:

The best time to visit Kerala is from October to February, when the weather is pleasant, and the humidity is relatively low. The monsoon season lasts from June to September, and while the rain can be heavy, the landscape is lush and green. March to May is the hot and humid season, and it’s best to avoid visiting during this time.

Best Places to Visit in Kerala:

1. Alleppey: Known as the “Venice of the East,” Alleppey is famous for its serene backwaters, where you can take a houseboat ride and enjoy the stunning scenery.
2. Munnar: Located in the Western Ghats, Munnar is a hill station known for its tea plantations, scenic beauty, and cool climate.
3. Kochi: This historic city is a melting pot of cultures and has a rich trading history. Kochi is famous for its Chinese fishing nets, colonial architecture, and spice markets.
4. Kovalam: This picturesque beach town is located near the capital city of Thiruvananthapuram and is known for its beautiful beaches and laid-back vibe.
5. Thekkady: Thekkady is a wildlife sanctuary located in the Western Ghats and is home to a variety of animals, including elephants, tigers, and bison. Visitors can take a guided tour of the sanctuary and go on a jungle trek.

Best Food to Eat in Kerala:

Kerala is known for its delicious cuisine, which is characterized by the use of coconut, curry leaves, and spices. Some of the must-try dishes include:

1. Appam and Stew: Appam is a type of pancake made with fermented rice flour, and stew is a vegetable or meat-based curry.
2. Puttu and Kadala Curry: Puttu is a steamed rice cake, and kadala curry is a spicy curry made with black chickpeas.
3. Meen Curry: Meen curry is a spicy fish curry made with coconut milk, tamarind, and spices.

Best Transport to Use in Kerala:

The best way to travel around Kerala is by using a combination of public transport and private taxis. The state has an extensive network of buses that connect major cities and towns. Taxis and auto-rickshaws are also readily available. For long-distance travel, you can take a train or a flight.
In conclusion, Kerala is a beautiful destination that offers a unique blend of nature, culture, and cuisine. With the information provided in this guide, you can plan a trip to Kerala that will be memorable and enjoyable. Don’t forget to pack your camera and taste buds, as you’re in for a treat!

To know more: https://travel2unravel.in/kerala/
Categories

Uncover the Wonders of India

Uncover the Wonders of India: 10 Must-Visit Destinations for Your Next Trip

Experience the Beauty, History, and Adventure of India’s Most Iconic Destinations

India is a country that offers a wide range of experiences to its visitors. From the majestic Himalayas to the beautiful beaches of Goa, from the bustling cities of Delhi and Mumbai to the serene backwaters of Kerala, India has something for everyone. Here are some of the best travel destinations to visit in India:

Taj Mahal, Agra: The Taj Mahal is one of the most famous landmarks in India and a UNESCO World Heritage Site. Built by Mughal Emperor Shah Jahan in memory of his wife Mumtaz Mahal, this iconic white marble mausoleum is considered one of the wonders of the world. Jaipur, Rajasthan: Known as the “Pink City,” Jaipur is the capital of the state of Rajasthan and is famous for its stunning palaces and forts, including the Hawa Mahal, Amer Fort, and City Palace. Kerala Backwaters: The Kerala backwaters are a network of lagoons, lakes, and canals that run parallel to the Arabian Sea coast. A popular way to experience the backwaters is by taking a houseboat cruise. Goa: With its beautiful beaches, relaxed vibe, and Portuguese heritage, Goa is a favorite destination for tourists from around the world. Popular beaches in Goa include Anjuna, Baga, and Calangute.

Ladakh: Located in the northernmost region of India, Ladakh is known for its starkly beautiful landscapes, including the Nubra Valley, Pangong Lake, and the Khardung La pass, one of the highest motorable roads in the world. Varanasi: One of the oldest continuously inhabited cities in the world, Varanasi is a spiritual center for Hindus and is situated on the banks of the River Ganges. Visitors can take a boat ride on the river to see the famous evening Aarti ceremony. Udaipur, Rajasthan: Known as the “City of Lakes,” Udaipur is famous for its stunning palaces and lakes, including the Lake Palace, Jagmandir, and Fateh Sagar Lake. Rishikesh: Located in the foothills of the Himalayas, Rishikesh is known as the “Yoga Capital of the World” and is a popular destination for those seeking spiritual growth and adventure. Visitors can go white water rafting, trekking, or attend a yoga retreat.

Hampi, Karnataka: Hampi is a UNESCO World Heritage Site and is famous for its ancient ruins, including the Virupaksha Temple, the Vijaya Vittala Temple, and the Hampi Bazaar.

Shimla, Himachal Pradesh: Shimla is a popular hill station in the northern state of Himachal Pradesh and is known for its colonial architecture, scenic views, and temperate climate. India is a country of diverse cultures, languages, and landscapes, and these ten destinations are just a small sample of what this incredible country has to offer. Whether you’re seeking spirituality, adventure, or relaxation, India has something for everyone.

To know more: https://travel2unravel.in/domestic/