Fund Transfer to Foreign Country and TCS provisions

TDS 455 views 1 replies

My friend wants to send Rs. 30 lakhs to his son in Australia to buy a house there.  Fundraising by pledging gold in a bank and taking a loan against it.

How much money can we send abroad?

Can he send money to his son without deducting TCS?

What is the limit to send money abroad without TCS?

Can he divide this money among his close relatives, and they will send the same individually to avoid TCS provisions?

Do we require any certification from CA for sending money abroad? , If yes, which form /certificate?

Can we avoid the TCS provisions by getting any certificate from a CA? If yes, which certificate/form

 

Kindly advise

 

Replies (1)
  • Allowed limit: USD 250,000 (~₹2 cr) per person per FY under LRS.

  • TCS exemption: First ₹10 lakh remitted per FY no TCS.

  • TCS above ₹10 lakh:

    • 20% for general purposes (incl. property).

    • 5% for education/medical (self-funded).

    • 0% if education funded by loan from approved financial institution.

  • Splitting: Separate relatives can remit under their own PANs but must be genuine.

  • CA Certificate: Useful for compliance but does not legally eliminate TCS.

  • Form 15CA/15CB: Bank usually requires compliance documentation.


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