As 20% TCS on foreign remittances is set to kick in, we untangle its mystery here
1 year, 7 months ago

As 20% TCS on foreign remittances is set to kick in, we untangle its mystery here

Live Mint  

Travelling to an overseas destination or remitting money abroad is set to be attract a higher rate of tax with 20 percent TCS to kick in from July 1, 2023 onwards. It is, however, vital to note that those who are remitting money abroad for education and for medical treatment will continue to pay a lower rate for remittances in excess of 7 lakh under the Liberalised Remittance Scheme. For TCS on remittance for travel and incidental expenses related to education and medical treatment, the rates of TCS as applicable to remittances for education and medical treatment, respectively, shall apply. The TCS rate on foreign remittances for education via loan from financial institutions will be 0.5 per cent in excess of 7 lakh.

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History of this topic

Tax collection at source: Who issues a TCS certificate and when?
1 year, 1 month ago

Tax collection at source: Who issues a TCS certificate and when?

Live Mint  

Tax collection at source, or TCS, is an additional amount collected as tax by a seller of specified goods from the buyer at the time of sale over and above the sale amount and is remitted to the government account. Starting Oct 1, 2023, the Government of India introduced TCS rate of 20 percent on foreign remittances of more than …

What is tax collection at source on foreign remittances under LRS? An explainer
1 year, 4 months ago

What is tax collection at source on foreign remittances under LRS? An explainer

Live Mint  

In the Budget 2023, government rolled out a higher tax collection at source of 20 percent on outward remittances under the Liberalised Remittance Scheme The higher tax rate was supposed to come into effect from July 1 onwards, but on June 28, 2023, a finance ministry notification clarified that the higher rates will come into force when the threshold is …

Tips to navigate the complexities of international student loans
1 year, 5 months ago

Tips to navigate the complexities of international student loans

The Hindu  

Many students who opt to study abroad often take a loan to cover the costs of tuition, accommodation, and other expenses. Credit history: Start to build your credit history early, it can help you get lower interest rates and higher loan amounts. A credit history is a record of a person’s borrowing and repayment activities that lenders consider when evaluating …

How to get 5% TCS for remittances beyond ₹7 lakh
1 year, 5 months ago

How to get 5% TCS for remittances beyond ₹7 lakh

Live Mint  

The ministry of finance on 28 June deferred the applicability of increased TCS, or tax collected at source, rate of 20% on overseas tour packages and remittances under the Liberalised Remittance Scheme for a further period of three months, from 1 July to 1 October. Before the budget announcements, a uniform TCS rate of 5% was applicable on all kinds …

Explained | Will all overseas spends come under the tax net?
1 year, 7 months ago

Explained | Will all overseas spends come under the tax net?

The Hindu  

The story so far: A proposal in the Union Budget to levy a higher tax on some types of remittances of funds abroad came into the limelight again this week after a notification was issued for its implementation from July 1. The Reserve Bank is being requested to look into this with a view to bring credit card payments for …

Spend up to ₹7 lakh abroad with your cards without worrying about TCS
1 year, 7 months ago

Spend up to ₹7 lakh abroad with your cards without worrying about TCS

Live Mint  

After backlash over 20% TCS on overseas credit card spending, the government on Friday announced that no tax will be charged on overseas spending of up to ₹7 lakh in a year using debit or credit cards. "To avoid any procedural ambiguity, it has been decided that any payments by an individual using their international Debit or Credit cards up …

Tax waived on annual forex spends up to ₹7 lakh: Finance Ministry
1 year, 7 months ago

Tax waived on annual forex spends up to ₹7 lakh: Finance Ministry

The Hindu  

The government, on May 19, blinked on its plan to levy a 20% tax on overseas credit card spending from July 1, in the face of a furore from taxpayers as well as businesses, and decided to exempt any payments by an individual using their international debit or credit cards up to ₹7 lakh per financial year from the levy. …

No Tax On Foreign Credit Card Spend Up To Rs 7 lakh
1 year, 7 months ago

No Tax On Foreign Credit Card Spend Up To Rs 7 lakh

Deccan Chronicle  

New Delhi: The government on Friday clarified that any individual making payments using their international debit or credit cards, up to Rs 7 lakhs per financial year, will be exempted from the Liberalized Remittance Scheme limits and will not be subject to Tax Collected at Source. To avoid any procedural ambiguity, it has been decided that any payments by an …

20% TCS on international credit card: Govt issues five-point clarification
1 year, 7 months ago

20% TCS on international credit card: Govt issues five-point clarification

Live Mint  

The Finance Ministry on Thursday issued a set of FAQs) on the Tax Collection at Source on foreign remittance through the Liberalised Remittance Scheme. The Union Budget 2023-24 had hiked TCS rates to 20%, from 5% currently, on overseas tour packages and funds remitted under LRS. Ans Section 206C of the Income-Tax Act 1961 provides for TCS is the business …

Foreign remittances: With 20% tax collection at source, sending money abroad to pinch more; details here
1 year, 10 months ago

Foreign remittances: With 20% tax collection at source, sending money abroad to pinch more; details here

Live Mint  

Travelling to an overseas destination or remitting currency abroad to your kin will now carry an extra financial burden of 20 percent towards the tax credit from the next financial year, announced the Union Finance Minister Nirmala Sitharaman during the Budget 2023. “The government seemingly wants to dissuade citizens from sending foreign currency abroad, and hence — levied a higher …

Budget 2023: 15% Hike in TCS For Foreign Travel & Investments, Says FM
1 year, 10 months ago

Budget 2023: 15% Hike in TCS For Foreign Travel & Investments, Says FM

News 18  

The government on Wednesday proposed to hike the TCS rate to 20 per cent from 5 per cent currently on overseas tour packages and a liberalized remittance scheme for remittance of funds out of India. Nangia Andersen India Partner Amit Agrawal said the increase in TCS rate to 20 per cent is a big surprise, especially with the comfortable forex …

Budget 2021: ’ Reduce tax on foreign remittance to boost overseas investments’
3 years, 11 months ago

Budget 2021: ’ Reduce tax on foreign remittance to boost overseas investments’

Live Mint  

The Finance Minister, in the last financial year had introduced a Tax Collected at Source of 5% on all outward remittances above ₹7 lakh. Indian residents can remit up to USD 250,000 under the LRS every year for various purposes such as medical treatment, gifts, maintenance of relatives abroad, foreign education and investment in real estate, stocks and bonds. However, …

5% tax on foreign tour, investments and study abroad from today: Details here
4 years, 2 months ago

5% tax on foreign tour, investments and study abroad from today: Details here

Live Mint  

Authorised dealers, typically banks and remittance companies will collect 5% tax at source once LRS remittance made by an individual crosses 7 lakh in a financial year. For the current financial year, any remittances made post March 2020 will count towards the 7 lakh threshold. Viram Shah explains, "If you have transferred ₹6 lakh before October and you transfer additional …

Key tax changes to kick in today
4 years, 2 months ago

Key tax changes to kick in today

Live Mint  

Several key direct and indirect tax changes will kick in from 1 October that businesses and individual taxpayers need to take note of. Bankers would be liable to collect TCS and remit to the government; therefore, the incidence of TCS is on the remitter, said Sandeep Jhunjhunwala, partner at Nangia Andersen LLP, a tax advisory firm. Banks may start collecting …

Tax on LRS remittance is not an additional cost. Here’s all you want to know
4 years, 3 months ago

Tax on LRS remittance is not an additional cost. Here’s all you want to know

Live Mint  

By Viram Shah From October 1, authorised dealers, typically banks and remittance companies will collect 5% tax at source once LRS remittance made by an individual crosses 7 lakh in a financial year. The Union Budget 2020 proposed a 5% TCS on remittances undertaken via the Liberalised Remittance Scheme above ₹7 lakh. ₹15,000 will be deducted as TCS 2) For …

What is the TCS on foreign remittances?
4 years, 3 months ago

What is the TCS on foreign remittances?

Live Mint  

Indian residents can remit up to USD 250,000 under the LRS every year for various purposes such as medical treatment, gifts, maintenance of relatives abroad, foreign education and investment in real estate, stocks and bonds. Similarly payments for foreign education originating an education loan from a financial institution in India are subject to a lower 0.5% TCS. The TCS will …

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