TCS at 5% shall be applicable on remittances exceeding INR 7 lakhs in a financial year

A new rule states that a 5% Tax Collected at Source (TCS) will apply to all foreign remittances made under the Liberalised Remittance Scheme (LRS) that exceed INR 7 lakhs within a financial year. This TCS is deducted by the bank based on an individual's PAN. Each person, including parents, can remit up to INR 7 lakhs separately, as the limit is calculated per individual's accountability.