Regarding Sections 206CQ and 206CT
This query is : Resolved
14 September 2025
One of my clients has bought certain foreign currencies in FY 2024 - 2025 through LRS under the above two sections .Because the total amount spent for this doesn't exceed the limit no TCS was collected. How to show this purchase and which ITR form should I use. The said client is coming under salary category. Thanks - K. Suresh.
14 September 2025
The purchase under the Liberalised Remittance Scheme (LRS) is not considered income, so it is not shown as income in the ITR.
If any TCS or TDS is reflected in Form 26AS under challan codes 206CQ or 206CT, such amounts can be claimed as tax credits during ITR filing, even if the threshold was not crossed and no TCS was actually deducted.
Mention the transaction in the "Schedule Foreign Assets" section only if the money was used to buy overseas assets (like shares, real estate, etc.), not for currency purchase for travel/remittance.
If any TCS or TDS is reflected in Form 26AS under challan codes 206CQ or 206CT, such amounts can be claimed as tax credits during ITR filing, even if the threshold was not crossed and no TCS was actually deducted.
Mention the transaction in the "Schedule Foreign Assets" section only if the money was used to buy overseas assets (like shares, real estate, etc.), not for currency purchase for travel/remittance.
14 September 2025
Use ITR-1 for salaried individuals if no foreign assets or other income types exist. Claim any tax credit from TCS/TDS challan entries if present, but do not declare the purchase of foreign currency itself as income.
Use ITR 2 if any thing to declare in Schedule FA.
Use ITR 2 if any thing to declare in Schedule FA.
14 September 2025
Thanks for the excellent reply Sir! May God be with you always !
Message likes :
1 times
14 September 2025
Thank you very much for good wishes....
14 September 2025
Good Luck...
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Capital gain from sale of house property
- Current Account Opening for Sole Proprietorship with Udyam Certificate - Zero Turnover
- TDS on Purchase of Immovable Property by NRI from NRI
- Opting our of sec 44AD
- INTEREST APPLICABLE ON ITC REVERSAL PORTION
- FORM 26A APPLICABILITY
- Value of property in capital gain
- Transporter Declaration form
- LC charges in relation to Asset purchased should be Capitalised ?
- Copyright software
- ITC of GST for landlord Rental Income
- SALE OF MOTOR CAR BY REGISTERED INDIVIDUAL
- GST Treatment of Insurance Commission for Existing GST Holder
- Cash gift by grand mother to her grand daughter
- Tax amount diff in Gstr1 and 3B in tax compare reports
- Tds on GST in connection with sale to public company
- Restoration of certificate of practice
- Regarding change in correspondence address in SSP portal
- No Compliences after incorporation
- USEFUL LIFE OF USED/SECOND HAND COMMERCIAL VEHICLES
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
CAclubindia
