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<h1>Tax Collection at Source on LRS remittances revised, with higher TCS rates and removal of the international credit card exemption.</h1> Tax Collection at Source under Section 206C(1G) applies to remittances under the Liberalised Remittance Scheme; Finance Act 2023 raised TCS rates for certain categories while preserving concessional treatment for education and medical remittances (including a lower rate for funds from institutional education loans). The May 16, 2023 omission of Rule 7 of FEM(CAT) Rules removes the exemption for international credit-card use abroad, bringing credit-card transactions within LRS accounting to prevent circumvention of remittance limits and to ensure uniform foreign exchange treatment.