Travel Money

The implementation of GST (Goods And Service Tax) on July 1, 2017 has revised the tax structure of transactions on several goods and services, including forex services in India. The revised rates for forex services come as a welcome move as the taxes often lie between 0.05% to 0.18% of the total forex transaction. When partaking in any kind of foreign exchange services like currency exchange, money transfer , or buying a forex card , one is only expected to pay the GST; and as per the directive from the Government of India, one is expected to pay 18% on the forex transactions that comes under the taxable value bracket. So what is “taxable value”? Taxable value is the set portion of the transaction upon which tax is levied. This reduces the amount of tax one has to pay on forex services greatly. Currently the government has set up 3 slabs of taxable value, based on the amounts of transactions. Slab 1: Up To Rs. 1 Lakh: On forex transactions up to Rs. 1 lakh,...

Over the past few years, the value of Indian rupee has been plummeting fast against the US dollar. And the falling value of a rupee means less export/import power in the hands of people as well as the government. Which in turn makes the nation financially weaker, hampering the prospects of international trade and currency exchange rates. Here are a few factors that change the dynamics of the Indian economy. Crude oil: With the fast development and growth of the Indian economy, the demand for petrol and petroleum products has been consistently rising. India produces about 20% crude oil we require, and the rest is imported from Saudi Arabia, Iran, and other Gulf countries. Reputed oil companies of India require millions of dollars every day in order to import crude oil and gas. Thus, the increase in the demand for the dollar leads to its appreciation and decrease in the value of the Indian rupees. Trade Tensions: The policies of the US President have had...

So, you are heading on a foreign trip and wondering what your travel money options are. Should you get a forex card , an ICICI bank travel card or just get enough foreign cash via currency exchange ? Should you opt for debit/credit cards or travellers’ cheques? So many questions keep going round in your head, and the whole thing can be quite daunting right? Not really, if you do some homework. Ideally, you should keep some spare cash but also get one of the forex cards for the bigger expenses. How about a HDFC forex card or an Axis bank forex card? You could pick one of them. A combination of various options is a good way to carry your money. First, let’s look at forex cards. Foreign exchange cards You can use your card to buy stuff at a mall or a market, spend on tickets, pay for your food at restaurants or order food/buy online. You can get in touch with your bank in your home country and load currency on to the card; this could be any of th...

Foreign travel needs a lot of research and planning. You need to pay attention to detail; travelling abroad is not just about booking air tickets or accommodation but also about how you are going to carry money for your expenses. It is important to stay safe and not carry a huge amount of cash around. How about making use of online currency exchange or a travel card ? Read on for ways to carry money safely: Handling cash: Try not to carry too much cash. If you have cash on you, you should divide it and carry it in several spots so that you still have enough money on you to get to a hotel or the nearest police station if you have been robbed or if you have lost it. Withdraw cash in small denominations so that you don’t lose a large note while taking out money from your wallet when you are shopping or buying some miscellaneous stuff. Use smart cards for transport and tickets: Using a lot of alternatives to cash helps in secur...