Trinamool chief Saket Gokhate says banks cannot verify expenses below Rs 7 Lakh per annum. GDP says false information
The government has said a Trinamool Congress spokesman’s claim that banks cannot check whether people have spent less than Rs 7 lakh a year is false.
In a fact-checking post on Twitter, the Press Information Bureau (PIB) called Trinamool spokesperson Saket Gokhale’s tweet that claimed people would be charged 20% as “fake”. withholding tax (TCS), regardless of the amount of their expenses abroad.
The government announced on Friday that no tax will be levied on overseas spending of up to Rs 7 lakh per year using debit or credit cards. Friday’s announcement followed questions from the public about the center’s previous announcement about TCS charging on all expenses.
GDP tweeted a screenshot of Mr Gokhale’s message and said it was a “false” claim.
“Statement: Banks cannot check whether you have spent less than Rs 7,000,000 in a year. This statement is false. An individual’s Liberalized Remittance Scheme (LRS) expenditure is compiled and monitored RBI (Reserve Bank of India). GDP says.
Claim: Banks cannot verify if you have spent less than 7 lacs in a year.#PIBFactCheck
▪️ This statement is false.
▪️ An individual’s expenses under the Liberalized Remittance Scheme (LRS) are compiled and monitored by @RBI. pic.twitter.com/xcmatDKeJQ
– GDP Fact Check (@PIBFactCheck) May 20, 2023
Mr Gokhale – who was released on bail by a Gujarat court on May 6 in a money laundering case – in the tweet attacking the Modi government said the new Rs 7 lakh exemption on spending at the foreigner is “a collyrium”.
“Banks cannot check if you have spent less than Rs 7 lakh per year. Therefore, you will be charged TCS on every transaction,” Mr Gokhale said in the tweet which has now been branded as “fake” by the government.
Mr Gokhale is facing money laundering allegations related to a crowdfunding initiative, for which he was arrested by the Enforcement Directorate (ED) in January this year.
Earlier this week, the government placed overseas credit card spending under the LRS scheme. This meant that any spending using credit cards abroad would incur a 20% tax from July 1. Debit card spending was already part of the LRS.
However, the decision to charge the TCS was criticized. On Friday night, the government said no TCS would be deducted on spending up to Rs 7 lakh abroad using a debit or credit card.