Click it and Unblock the Notifications
How much did you spend last year on your vacation? You surely have a record or can get it in one click. But ever wondered, what is the overall expenditure that Indians spent in 2022-2023 on foreign travel?
According to figures from the Reserve Bank of India, TOI stated that between April and December, Indians spent about $10 billion on international travel. This amount surpasses spending in any given fiscal year and is the highest of its sort ever. Before this, $7 billion in 2019-20 was spent on international travel throughout a full fiscal year.
One month's spending:
According to the RBI data, Overall Indians spent $1.137 billion on traveling in just one month of December 2022. This brings the total raised in the Financial year of 2023 till December to $9.947 billion.
Total money sent abroad:
The overall amount of money sent abroad is $19.354 billion when gifts, investments, and foreign currencies used for education are included. The record high in this category for FY22 was $19.61 billion. In comparison to less than a billion US dollars in remittances up to FY18, Indians are now spending close to 2 billion US dollars on a monthly average, according to the report.
The Tax Collected at Source (TCS) rate on money sent abroad under the Liberalized Remittance Scheme has been proposed to rise dramatically from 5 percent to 20 percent by the Centre in Budget 2023.
The LRS program, which was launched in 2004, allows all residents, including minors, to freely remit up to $ 250,000 each fiscal year for any permitted current account transaction, capital account transaction, or combination of both.
In order to track the remittances and link them to income tax returns, a TCS of 5% was placed on the LRS plan in 2020. This has been increased to 20% and could cause a decline in outgoing remittances. Experts say that the impact will probably only be temporary.
The TCS rate has been held constant at 5% of the amount sent to aid international students and those choosing medical treatment. Nevertheless, beginning July 1, 2023, investments, gifts, and international trips costing more than Rs 7 lakh per year would be affected.
TCS is not a separate tax. It is credited to your accounts with the authorities and deducted from your tax bill, much like TDS.
Connect with us on Facebook and Instagram for daily travel content and tips where we help travellers like you have the best travel experience.
