Browsing: implications

[ad_1] By Vatsal Nahata An important but often overlooked argument in India’s public debt policy revolves around who ultimately finances and owns the stock of debt. India’s public debt to GDP ratio in 2021 stood at 83.4% with only 3% denominated in foreign currency and 4% being held by non-residents. Even the small foreign currency-denominated debt is largely from official sources and on concessional terms. With a long average maturity of about 12 years, India’s stock of debt is mostly on fixed-rate terms. This then begs the question of who finances India’s public debt. This is not only important from…

[ad_1] 20% TCS on Credit Card: International Credit Card spending outside India would come under the Liberalised Remittance Scheme (LRS) from July 1. Spending with international credit cards will also attract a higher rate of Tax Collected at Source (TCS) at 20% effective July 1, 2023. The Central Government on Tuesday (May 16, 2023) notified the amended rules under the Foreign Exchange Management Act (FEMA), which has brought credit card spending outside India under the LRS. The amended rule would be applicable from July 1, 2023. While the move is expected to help track high-value overseas transactions, the Government’s decision…