Need Expert Advice?Our Gurus Can Help

TCS and Tour Booking: Can it Be Claimed on IT Return?

Mihir Tanna |961 Answers |Ask -Follow

Tax Expert - Answered on Sep 09, 2024

Mihir Ashok Tanna, who works with a well-known chartered accountancy firm in Mumbai, has more than 15 years of experience in direct taxation.
He handles various kinds of matters related to direct tax such as PAN/ TAN application; compliance including ITR, TDS return filing; issuance/ filing of statutory forms like Form 15CB, Form 61A, etc; application u/s 10(46); application for condonation of delay; application for lower/ nil TDS certificate; transfer pricing and study report; advisory/ opinion on direct tax matters; handling various income-tax notices; compounding application on show cause for TDS default; verification of books for TDS/ TCS/ equalisation levy compliance; application for pending income-tax demand and refund; charitable trust taxation and compliance; income-tax scrutiny and CIT(A) for all types of taxpayers including individuals, firms, LLPs, corporates, trusts, non-resident individuals and companies.
He regularly represents clients before the income tax authorities including the commissioner of income tax (appeal).... more

Question by Shyamal on Aug 25, 2024Hindi

Regarding LRS I have two queries : 1. TCS deduction over Rs. 7 Lakh - this amount also includes a personal tour ticket amount or only a commercial package tour cost (including ticket amount)? 2. If TCS can be reclaimed while filing IT returns, what is the objective of doing TCS only to refund it a year later? OR are there situations in which TCS is not refunded?

Ans: TCS is required to be collected on any amount received from buyer of tour package and it includes expenses for travel, hotel stay, boarding, lodging or any other expenses of similar nature.

In my view, purpose of TCS is keep the records of spending on foreign tour and compare it with capacity of buyer from Income offered to tax.

DISCLAIMER: The content of this post by the expert is the personal view of the rediffGURU. Users are advised to pursue the information provided by the rediffGURU only as a source of information to be as a point of reference and to rely on their own judgement when making a decision.

MoneyReply

You may like to see similar questions and answers below

Anil Rego |377 Answers |Ask -Follow

Financial Planner - Answered on Dec 10, 2021

Question by Delrun - Dec 10, 2021Hindi

I enjoy reading your posts answering all the tax queries. I need your expert advice. I am an NRI. I invest in stocks and mutual funds. Recently in July and August 2021, I switched three equity mutual funds from regular to direct schemes. As a result, a total of Rs 24,000 was deducted as TDS on LTCG @ 10 per cent. I want to know if I can reclaim the TDS deducted. I do not have other income in India except for interest earned on NRE FDs which is exempt from tax. I am also receiving some dividends on shares but that is of nominal value. I have never filed my ITR earlier as my income in India has always been below the taxable limit. I would appreciate if you could answer my tax query.

Ans: Unlike residents, an NRI does not have the option to adjust capital gains against the basic exemption limit of Rs 2.5 lakh. Hence, you cannot claim the TDS.

There are options to avoid double taxation by claiming tax relief if India has signed the Double Taxation Avoidance Treaty (DTAA) with the country of your residency.

Money

Mihir Tanna |961 Answers |Ask -Follow

Tax Expert - Answered on Jul 09, 2024

Asked by Anonymous - Jun 20, 2024Hindi