Table of Contents
What are the new rules regarding Tax Collection at Source (TCS) implemented by the Reserve Bank of India (RBI)?
The RBI has decided to implement new rates of TCS, which is a tax levied on various transactions made by Indian citizens abroad. These new rules will come into effect on October 1, 2023.
How will these new TCS rules impact spending abroad?
If an individual spends a significant amount abroad within a financial year, TCS will be applicable. However, it’s important to note that TCS will not be charged on international credit card usage.
What is the Tax Collection at Source (TCS) rate for outward remittance under the RBI Liberalized Remittance Scheme (LRS)?
Under the LRS, an individual can send up to $250,000 abroad annually. According to the new rules, remittances exceeding Rs 7 lakh for purposes other than medical and education will attract a TCS rate of 20 percent.
Click on the picture below to Open Demat account with Zerodha
Are there any exemptions from the TCS under these new rules?
Yes, medical and education-related remittances will be exempt from the 20 percent TCS rate. Other transactions exceeding Rs 7 lakh will be subject to this tax.
Also read: Have a look at the following story.
When will these new TCS rules take effect?
The new TCS rules will come into effect on October 1, 2023, impacting various financial transactions and spending by Indian citizens abroad.
Disclaimer:
The content provided in this web post is for informational purposes only and should not be construed as financial advice. Readers are encouraged to consult with financial professionals before making any significant financial decisions.
