The tax law mandates that certain persons being the sellers must collect a percentage of tax at the time of receipt of money from the buyers. Starting early this month, the Government of India introduced TCS rate of 20 percent on foreign remittances of more than ₹7 lakh in a financial year
Starting October 1, 2023, new tax collection at source (TCS) rates will affect various financial transactions, such as international travel, investments in foreign assets, and educational expenses abroad. Under the Liberalised Remittance Scheme (LRS), individuals can remit up to $250,000 in a financial year.
Parents sending money for other living expenses will face the 20% TCS unless they can prove it is for educational purposes. To mitigate the impact, parents can use international cards, maintain transaction records, use the correct LRS code, and be prepared for income tax returns.
Kolkata, Sep 28 (PTI) As the new Tax Collection at Source (TCS) on foreign remittances is set to become applicable from October 1, travel agents' body TAAI has made a last-minute plea to the government, urging them to abolish the decision or defer its implementation until the next fiscal year to allow discussions on overseas tour packages.