The Economic Times

TCS on credit card and forex card under RBI LRS lacks parity: What experts suggest Budget 2026 do?

Foreign spending by Indians faces a tax anomaly. While forex and debit cards incur Tax Collected at Source (TCS) under LRS, international credit card spending remains exempt, creating a regulatory imbalance. Experts anticipate Budget 2026 will address this disparity, aiming for uniform treatment and enhanced transparency in overseas transactions.