TCS on foreign remittance transactions: 5 things to know
1.When you transfer money abroad for remittances, travel and investments under the LRS, they are subject to ‘tax collected at source’ (TCS).2.From 1 July 2023, there will be a 20% TCS on all remittances, except those for education or medical treatment.
3.TCS will be 5% for amounts exceeding Rs.7 lakh for education and medical treatment abroad.
4.One can claim this deducted amount while filing taxes as an income tax refund or as credit while computing advance taxes.
5.Any Payment by international debit or credit card up to Rs.7 lakh per financial year is excluded from the LRS limit and will not attract any TCS.
Content on this page is courtesy Centre for Investment Education and Learning (CIEL).
Contributions by Girija Gadre, Arti Bhargava and Labdhi Mehta.
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This story originally appeared on: India Times - Author:Faqs of Insurances
