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 for implementation of revised TCS rates and for inclusion of credit card payments in LRS Increased TCS rates to apply from 1st October, 2023 In the Budget this year, certain changes were announ
Daily Limit Reached
You have reached your daily limit of 2 Free News
Subscribe to CCI PRO for unlimited access
Why Upgrade to CCI PRO?
- No Ads
- WhatsApp Community
- Daily E-Newsletter
- Unlimited News Access
- Profile Visitors
- Link Social Profiles
- Featured Job Posts
- Pro Badge
- Expert GST Guidance
- Unlimited Forum Replies
- Download Content in PDF
1 Year PLAN
1999
(Excl. of GST ₹359)
2 Years PLAN
3499
(Excl. of GST ₹629)
BEST VALUE
3 Years PLAN
4999
(Excl. of GST ₹899)
View all CCI PRO benefits
Already a PRO member? Login here for an ad-free experience. 07941056694
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.
CAclubindia
