Quick Summary
Important changes w.r.t Liberalised Remittance Scheme (LRS) and Tax Collected at Source (TCS) No change in rate of TCS for all purposes under LRS and for overseas travel tour packages, regardless of mode of payment, for amounts up to Rs. 7 lakh per individual per annum Government gives more time
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FAQ :
The new TCS rates for LRS remittances will apply from 1st October 2023.
Yes, the first Rs 7 lakh of remittances under LRS per individual per financial year will not attract any TCS.
For remittances above Rs 7 lakh, the TCS rates are 0.5% for education financed by a loan, 5% for education or medical treatment, and 20% for all other purposes.
No, for now, transactions made through international credit cards while overseas will not be counted as LRS and therefore will not be subject to TCS.
For overseas tour packages, the TCS rate is 5% for the first Rs 7 lakh per individual per annum. Expenditure exceeding this limit will be subject to a 20% TCS rate.
Until 30th September 2023, the earlier TCS rates applied, which included 5% for overseas tour packages without a threshold, and generally 5% for other LRS remittances above Rs 7 lakh.
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