Remittance under the LRS - tax implications - Income Tax

I am a retired Sr. Citizen (aged 75).

I am in the process of obtaining my ‘Green Card’ (US Permanent Residence) and soon, I will be transferring my residence to the USA, to stay with my daughter, as her dependent.

So, I need to liquidate and transfer all my money in India, valued about Rs. 1.7 crores (held in bank fixed deposits and equities), to my own account, opened in an US bank.

My present status is Resident Indian (though I was an NRE/NRO, few years ago). So, if I repatriate this whole sum of Rs. 1.7 crores to my US account, all in the current FY, there will be a huge TCS of Rs. 8.1 lacs (calculated @ 5% on the amount remitted, in excess of Rs. 7 lacs).

I am a taxpayer, my sole incomes being bank term deposits interest income and capital gains on my stock selling.

Is this TCS of Rs. 8.1 lacs fully recoverable as tax refund upon my current FY tax filing? If not, is there any special/hidden tax on the money transferred, which I am bound to pay?

Is there any way to avoid this TCS, like submitting Forms 15CA or 15CB?

I kindly request Experts’ valuable opinion for a cost-effective solution.

Sir,

First of all, TCS charge on LRS would be allowed as tax credit in your income tax return. Since you are going to liquidate your FD's and equities and repatriating that to US, please ensure to calculate and pay tax on FD interest income and capital gain on equities. You can offset TCS amount against the tax payable on FD interest income and capital gain and only balance (if any) shall be payable. If your TCS credit is more than tax payable, excess amount can be claimed as refund in your income tax return. There is no tax on money transferred to US account as that would out of tax paid income.

You can take a help of tax consultant to determine your exact income tax liability to avoid unnecessary notices from tax office.

Regards,

Manoj Gavali

mgassociates @ yahoo.com