TCS on foreign Remitance

Respected Members,

 

I am Transfering Rs. 10 L from my normal account to NRO account. 
Do i need to Deduct TCS on the payment.

Or the Bank will directly deduct it.

I dont have any TAN number right now. 

Pls advice. 

Replies (1)

When transferring ₹10 lakhs from your normal account to an NRO (Non-Resident Ordinary) account, TCS (Tax Collected at Source) may be applicable. TCS Applicability:

1. *Section 206C(1G)*: TCS is applicable on cash withdrawals exceeding ₹1 crore from a bank account in a financial year. However, for NRO accounts, TCS is applicable on transfers exceeding ₹7 lakhs, as per the Finance Act, 2020 [1].

 2. *Rate of TCS*: The TCS rate is 30% (plus applicable surcharge and cess) for non-resident Indians (NRIs) without a Permanent Account Number (PAN) [2]. Responsibility for TCS Deduction:

1. *Bank's Responsibility*: The bank is responsible for deducting TCS on the transfer amount, if applicable.

 2. *No TAN Required*: As an individual, you don't need a TAN (Tax Deduction and Collection Account Number) for this transaction. What to Expect:

1. *TCS Deduction*: The bank will deduct TCS on the transfer amount, if applicable, and deposit it to the government on your behalf. 

2. *TCS Certificate*: The bank will provide you with a TCS certificate (Form 27D) detailing the TCS deducted and deposited. To ensure a smooth transaction:

 1. *Verify with the Bank*: Confirm with the bank about their TCS deduction process and any additional requirements.

2. *Provide PAN and Form 15G/15H (if applicable)*: If you have a PAN, provide it to the bank. If you're eligible, submit Form 15G or 15H to avoid TCS deduction. 

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