Browsing: remittance

[ad_1] The Union Budget 2023-24 proposed an increase in tax collection at source (TCS) for foreign outward remittances under Liberalised Remittance Scheme (LRS) to 20 per cent, applicable from July 1, 2023, with some exceptions for education and medical purposes. The implementation of the same has been deferred till October 1, 2023. Before this proposal, 5 per cent TCS was applicable on foreign outward remittances above Rs 7 lakh in a financial year. The most affected segments are overseas tour packages and all other purposes excluding education and medical treatment. Banks and financial institutions issued notices to their customer about…

[ad_1] The Government has brought overseas expenses by Indians through International Credit Cards under the ambit of Liberalised Remittance Scheme (LRS). To this effect, the Government on May 16 removed Rule 7 of the FEM (CAT) 2000 rules that exempted the use of international credit cards abroad from the LRS. Under LRS rules, an individual is allowed to make remittances up to USD250,000 for several transactions (see list below). Any remittance above this limit requires prior approval from the Reserve Bank of India (RBI). Following is the full list of transactions on which the LRS limit applies, according to Finance…

[ad_1] TCS on Foreign Education from July 1: There has been no change in the TCS rate for remittances for the purpose of foreign education/study abroad. According to a clarification issued by the Finance Ministry on May 18, the old TCS rate will continue to apply to remittances for study abroad from July 1. Following are the details of the TCS rate and exemption limit. TCS rates on remittances for education from July 1: 1. If the amount being remitted out is a loan obtained from any financial institution as defined in Section 80E of the Income Tax Act: The…