This is an archive article published on September 28, 2023

Higher 20% TCS on overseas remittances, foreign tour packages kicks in from October 1

Currently, funds transferred overseas under the Reserve Bank's LRS attract 5 per cent Tax Collection at Source (TCS) on amounts exceeding Rs 7 lakh.

The higher rate of 20 per cent TCS to be levied on spending above Rs 7 lakh on foreign tour packages and liberalised remittance scheme (LRS) will kick in from October 1. (File image)

By: PTI

2 min readNew DelhiSep 28, 2023 04:18 PM IST First published on: Sep 28, 2023 at 04:13 PM IST

The higher rate of 20 per cent TCS to be levied on spending above Rs 7 lakh on foreign tour packages and liberalised remittance scheme (LRS) will kick in from October 1.

Currently, funds transferred overseas under the Reserve Bank’s LRS attract 5 per cent Tax Collection at Source (TCS) on amounts exceeding Rs 7 lakh.

The TCS rate will go up to 20 per cent from October 1.

Currently, LRS transfers up to Rs 7 lakh in a fiscal do not attract any TCS. The same provision will continue from October 1.

At present, purchase of overseas tour packages currently attracts 5 per cent TCS.

From October 1, such spending up to Rs 7 lakh will attract 5 per cent TCS. Above the threshold, TCS rate will be higher at 20 per cent.

# LRS
# TCS