Due to the recent increase in inward remittances from the US, Saudi Arabia, UAE, Malaysia, Singapore, and the United Kingdom within India, the Indian government can now plan to increase taxes and fees on international transactions. Currently, India’s other remittances are being received the most in the world due to which to further strengthen the Government’s Indian Rupees or Banking-finance services, now the 20% TCS applicable on regular remittances can be increased to 30%. Now trade has been started for Indian currency outside UAE, in which trade between UAE and Indian banks can also be done in other local currencies which can be done through top remittance receivers of UAE through international business, foreign money transfers, or international payment solutions. Therefore, INR/AED can be used instead of USD in outward or inward remittances.
Why Indian Government impose a 30% TCS tax or Inward or Outward Remittance to the US, UK, and Singapore?
After the US, United Kingdom, Singapore, and Saudi Arabia, the UAE can also use Indian Currency for International Business due to which UAE can get a lot of achievement in taxes or payment solutions on USD because AED/INR pairs are now global. So now India’s foreign remittances can be increased a bit which will strengthen the Indian currency and Indian Rupees will be the world’s largest international currency after the Asian yuan in place of USD. Recently, there has been an inward inflow remittance of about $130 billion USD in India, which has made India the top remittance or International Payments solution country in the world. And in everyone’s accounts, the Indian Government will see the Indian Rupee strengthening against the USD in the next few years and top investors also want to have a stake in the Indian economy.