Anushka Rathod's Latest Tax Tips: Maximize Savings on Luxury Cars and Foreign Vacations

Anushka Rathod, the famous finance expert has good news for salaried employees! If you purchase a premium car or go on a foreign vacation, then you can enjoy some tax benefits. This update comes from the latest financial report and is something every salaried person should know.

Understanding Tax at Source (TCS)

When you book a tour package or transfer money to study abroad, you are normally required to pay an extra cost known as Tax Collected at Source (TCS). This might be as much as 20%. For example, if you book a travel package that costs more than Rs. 7 lakh during your summer vacation, you will be charged 20% TCS.

To Get Your Money Back

The TCS amount can be refunded, but you must wait until you file your income tax return (ITR) for the next year. This generally occurs in June or July. After filing the ITR, the refund may take another month or more to get to your account. So, you may have to wait more than a year to get your refund.

New 2025 Budget

From January 2025, 1% TCS was also proposed to be applied to cars and luxury goods. Now, this amount can be in thousands or lakhs, and you usually have to claim it during tax filing at the end of the financial year in July.

How to Take Advantage of the New Changes?

Here's some excellent news! According to the new budget, you may now disclose the TCS amount to your employer. TDS (Tax Deducted at Source) will be deducted from your salary as required. This means you have more cash available each month, making it easier to manage your finances.

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This new rule will be a great help to individual salaried employees who wish to improve their finances. So, if you are planning a big purchase or an exciting vacation, be sure to take advantage of these new tax benefits.