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 also not apply if the buyer of the foreign exchange is subject to Tax Deducted at Source under the Income Tax Act, 1961. It can raise the upfront cost of foreign education and travel, even though the tax can be subsequently claimed back as a refund while filing the income tax return.

Tax Indian Tds Tcs Foreign Tour Foreign Education  tcs  tax  lakh  apply  remittances  subject  education  foreign  tour  abroad  tds

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 …

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 …

ITR filing: Sending money outside India? Know the new income tax rule
1 year, 6 months ago

ITR filing: Sending money outside India? Know the new income tax rule

Live Mint  

Every overseas remittance made under the liberalised remittance scheme would be subject to a 20% tax collected at source starting 1 July 2023, with the exception of those sent for medical and educational expenses, for which a 5% TCS will be imposed after the threshold of ₹7 lakh is exceeded annually. Starting 1 July 2023, Tax Collected at Source on …

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 …

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 …

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 …

Discover Related