As September arrives, it’s crucial to remember the impending personal finance deadlines, as this could be your final chance to take action. Delaying could lead to unnecessary hassles, while prompt action can save your time and energy for other important life tasks. Here are a few key points to keep in mind as September begins:
The new TCS rules for foreign travel will take effect from October 1. Thus, this is your last month before these new rules come into play. It’s essential to pay a 5 per cent TCS on foreign tour packages before October 1, 2023. Following that, the new rules will entail a 5 per cent TCS up to Rs 7 lakh, and thereafter, 20 per cent TCS will be applicable. However, remember that TCS is not an additional tax; it can be adjusted against your total income tax liability or reclaimed while filing income tax returns (ITR).
If the idea of paying more due to this tax doesn’t sit well with you, consider buying forex in advance this month. Sudarshan Motwani, Founder and CEO of BookMyForex.com, told Business Today, “TCS will not apply to forex transactions below Rs 7 lakh in a financial year. If you plan to travel or transfer money abroad and need to buy forex worth more than Rs 7 lakh, you can place your orders in advance. Following RBI’s guidelines, you can purchase currency up to 60 days before your trip. If you travel before November 30, you can buy forex worth more than Rs 7 lakh by September 30 and avoid paying 20 percent TCS.” The Union finance ministry has increased TCS on foreign exchange (forex) transactions by amending Section 206C of the Income Tax (I-T) Act.
For those planning after September, there’s an option to split ticket and hotel bookings to avoid TCS. TCS will be levied on tour packages and not on separate transactions for tickets and hotel bookings. This way, you could save on TCS, but you’ll have the responsibility of planning your itinerary yourself. Another option is to book through a foreign tour operator, as international credit card transactions with foreign tour operators are exempt from TCS. In the meantime, you can continue using credit cards, as they don’t attract TCS. Just be aware of the high forex mark-up associated with these cards.
Last month to exchange Rs 2000 currency notes
The RBI has clearly mentioned that people can approach any banks or post offices to deposit or exchange their Rs 2,000 notes till 30th September 2023. On May 19, the RBI declared the withdrawal of Rs 2,000 denomination banknotes from circulation, allowing individuals until September 30 to deposit or exchange them for different denominations. The central bank confirmed that these notes would remain as legal tender during this period, but did not clarify their status beyond September 30.
Finally, the last date for filing of GSTR-1 and GSTR-3B will be 11th and 20th September.
Read More: 4 important financial deadlines in September: Act now for mutual fund