Using credit cards abroad will be expensive: a 20% tax will be levied on it from July 1

Using a credit card abroad is about to get expensive. From July 1, 20% tax collected at the source ie TCS will be levied on this. The Central Government amended the rules under the Foreign Exchange Management Act on 16 May.
After this amendment, the use of International Credit cards outside India has come under the Liberalized Remittance Scheme ie LRS. The government said that this has been done in consultation with the Reserve Bank of India. After this change, the use of credit cards may decrease.
TCS rate will be 5% till June 30. It has also been told in the notification issued by the government that these changes will not be applicable to the payment for the purchase of foreign goods/services from India. A subscription to a service such as a newspaper, or online streaming. Taxpayers can claim it in ITR filing.
Credit card usage outside India was till now kept out of LRS vide Rule 7 of the Foreign Exchange Management (Current Account Transactions) Rules 2000. TCS was increased from 5% to 20% in this budget. Therefore, from July 1, instead of 5%, TCS will be 20%.
The Centre's new revised rules on international credit card spending have been criticized by BharatPe's ex-chief and Third Unicorn founder Ashneer Grover. He said- It is a very interesting rule to bring in a 20% TCS and LRS limit on foreign credit card spend. Yes, it is certain that TCS will never be imposed on political donations! There you will get the rebate in reverse income tax.
Under the old tax regime, tax exemption is given under Section 80 GGB of the Income Tax Act, 1961. Under this rule, any Indian company or enterprise that makes a donation to a political party or an electoral trust registered in India can claim a deduction for the amount contributed under 80GGB. That means tax exemption can be taken.