Tax Collected at Source (TCS) is a tax levied by the Indian government on certain transactions at the time of purchase. It is collected by the seller from the buyer and deposited with the government. Here are the key points regarding TCS and its application to overseas spending using credit cards: 1. TCS is applicable on specific transactions mentioned in the Income Tax Act, such as the purchase of motor vehicles, certain goods, and services. 2. TCS is not applicable to credit card payments made for overseas spending, as clarified by the Finance Ministry. This means that individuals using their credit cards for transactions abroad will not be liable to pay TCS. 3. However, it's essential to note that this clarification applies specifically to credit card payments made for overseas transactions. TCS may still be applicable for other types of transactions in India, as per the specified rules. 4. Individuals using their credit cards for overseas spending should be aware of other applicable taxes or charges, such as foreign currency conversion fees or international transaction fees that may be levied by the credit card issuing bank. It is advisable to consult with a tax professional or refer to the latest guidelines issued by the government for accurate and up-to-date information regarding TCS and its application to specific transactions.