Foreign Remittances To Attract 5% TCS From October 1

As the major tax provision kicks off from next month, one needs to keep a tap on their foreign remittances if any as they will now attract TCS at the rate of 5% subject to riders beginning October 2020.

This is for money sent abroad as part of LRS(liberalized remittance scheme).

Conditions when TCS on foreign remittance shall not apply
1. If the remitted amount is less than Rs. 7 lakh
2. Not apply for tour package
3. If the purpose is not for buying a tour package then for any amount above this threshold, TCS shall apply.
4. For students, TCS @ 0.5% shall be charged for remittance made over Rs. 7 lakhs.
5. Also, in case the person is subject to TDS under the income tax Act then the provision of TCS shall not apply.

GoodReturns.in

Disclaimer: The views and recommendations expressed are solely those of the individual analysts or entities and do not reflect the views of GoodReturns.in or Greynium Information Technologies Private Limited (together referred as “we”). We do not guarantee, endorse or take responsibility for the accuracy, completeness or reliability of any content, nor do we provide any investment advice or solicit the purchase or sale of securities. All information is provided for informational and educational purposes only and should be independently verified from licensed financial advisors before making any investment decisions.