Twitter is a new Jantar Mantar for protests, say netizens

After the Centre announced that payments up to Rs 7 lakhs per financial year by international debit or credit cards will be exempt from the Liberalised Remittance Scheme (LRS) limits, Twitter went wild with reactions.

The Finance Ministry clarified on Friday that payments made by individuals using their international debit or credit cards up to Rs 7 lakh per financial year will not be included in the Liberalised Remittance Scheme.

A widespread social media uproar forced the government to tweak the rules imposing 20 per cent TCS on international transactions via credit cards, users said.

Taxpayers were concerned about the imposition of 20 percent TCS on international credit card and debit card transactions under the Liberalised Remittance Scheme (LRS) beginning on July 1. There will be no TCS on small transactions up to Rs 7 lakh, according to the Friday clarification.

"Concerns have been raised about the applicability of Tax Collection atSource (TCS) to small transactions under the Liberalized Remittance Scheme(LRS) from July 1, 2023. To avoid any procedural ambiguity, it has been decidedthat any payments by an individual using their international Debit or Creditcards up to Rs 7 lakh per financial year will be excluded from the LRS limitsand hence, will not attract any TCS,” the Finance Ministry said in a statement.

The May 16 notification raised heckles among Twitter users who went as far ascalling the tax revision rule as "tax terrorism".

Some Twitter users called the Rs 7 lakh clarification an eyewash, while others considered it a major relief after the Finance Ministry clarified the issue.

The following are some Twitter reactions:

— athreya(@athreya49) May 19, 2023

Honest question on the #TCSTax from experts ! Hypothetically if someone spends10 lakhs on their Credit or Debit Card abroad... is the -#TCSTax levied on thebalance (in this case the ₹ 3lakhs) or on the complete amount ? Considering noTCS to be deducted upto Rs 7 lakh ! https://t.co/CZzpLJuBlN

— GurmeetChadha (@connectgurmeet) May 18, 2023

Why is @FinMinIndia bent on harassing all taxpayers and citizens? If some Plmark ‘some’ not all, misuse,have a 2% TCS to trace,why 20% for all? Why causepain to all honest citizens too? @nsitharaman is this ease of life?@narendramodi Sir pl intervene. Living is more difficulthttps://t.co/FBOyRXMsaC

— Chittukuruvi (@chittukuruvi4) May 19, 2023

In any case despite the govt’s climb down and Rs 7 lakh limit, the 20% rate onTCS is too high. Govt should partially roll back that also and reduce TCS to5%. Then we all can forget this and go back to IPL or US debt ceiling or SudhaMurthy jokes.

— Kharavela (@toshali2023) May 19, 2023

Following the May 16 notification, which proposed the imposition of 20 per centTCS on international credit card spending, Twitterati shared some of their concerns, opinion and far-reaching implications of the new rule.