As per Union Budget 2023, Income Tax Collection at Source (TCS) of 20% is applicable from July 1, 2023 on all international hotel bookings resulting in foreign currency remittance outside India under Liberalised Remittance Scheme (LRS) of RBI.
TCS is a mode of income tax collection. It is neither a cost nor an additional tax. You can immediately adjust TCS credit against income tax payable and excess, if any, can be claimed as refund.
How to claim your TCS?
-
Verify your TCS credit TCS credit would automatically reflect in your Form 26AS on quarterly basis.
-
Claim your credit TCS can be adjusted against the income tax payable on any other income such as interest, rent, capital gains, etc.
-
Claim refund In case there is no income tax payable, you can claim the refund of the TCS amount at the time of filing your IT return.