{"id":6316,"date":"2023-10-19T10:11:06","date_gmt":"2023-10-19T10:11:06","guid":{"rendered":"https:\/\/www.caindelhiindia.com\/blog\/?p=6316"},"modified":"2024-06-16T07:45:35","modified_gmt":"2024-06-16T07:45:35","slug":"tcs-20-from-01-10-2023-on-foreign-remittances","status":"publish","type":"post","link":"https:\/\/www.caindelhiindia.com\/blog\/tcs-20-from-01-10-2023-on-foreign-remittances\/","title":{"rendered":"TCS @ 20 % from 01-10-2023 on foreign remittances"},"content":{"rendered":"<h4><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-full wp-image-6317\" src=\"https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2023\/10\/TCS..jpg\" alt=\"TCS\" width=\"1500\" height=\"693\" srcset=\"https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2023\/10\/TCS..jpg 1500w, https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2023\/10\/TCS.-300x139.jpg 300w, https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2023\/10\/TCS.-1024x473.jpg 1024w, https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2023\/10\/TCS.-768x355.jpg 768w, https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2023\/10\/TCS.-800x370.jpg 800w\" sizes=\"(max-width: 1500px) 100vw, 1500px\" \/><\/h4>\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_58 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<p class=\"ez-toc-title\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-69d436dbf258f\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-69d436dbf258f\"  aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><ul class='ez-toc-list-level-3'><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/www.caindelhiindia.com\/blog\/tcs-20-from-01-10-2023-on-foreign-remittances\/#Key_features_of_Tax_Collection_at_Source_20_percentage_from_01-10-2023_on_foreign_remittances\" title=\"Key features of Tax Collection at Source @ 20 percentage from 01-10-2023 on foreign remittances: \">Key features of Tax Collection at Source @ 20 percentage from 01-10-2023 on foreign remittances: <\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/www.caindelhiindia.com\/blog\/tcs-20-from-01-10-2023-on-foreign-remittances\/#Liberalized_Remittance_Scheme\" title=\"Liberalized Remittance Scheme:\">Liberalized Remittance Scheme:<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/www.caindelhiindia.com\/blog\/tcs-20-from-01-10-2023-on-foreign-remittances\/#Current_Account_Transactions\" title=\"Current Account Transactions\">Current Account Transactions<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/www.caindelhiindia.com\/blog\/tcs-20-from-01-10-2023-on-foreign-remittances\/#Tax_Collection_At_Source_5\" title=\"Tax Collection At Source @ 5%\">Tax Collection At Source @ 5%<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/www.caindelhiindia.com\/blog\/tcs-20-from-01-10-2023-on-foreign-remittances\/#What_is_Tax_Collection_At_Source_applicability_of_threshold_limit_of_Seven_lakhs\" title=\"What is Tax Collection At Source applicability of threshold limit of Seven lakhs :\">What is Tax Collection At Source applicability of threshold limit of Seven lakhs :<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/www.caindelhiindia.com\/blog\/tcs-20-from-01-10-2023-on-foreign-remittances\/#TDS_TCS_Rate_chart_for_FY_2024-25\" title=\"TDS &amp; TCS Rate chart for FY 2024-25\">TDS &amp; TCS Rate chart for FY 2024-25<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/www.caindelhiindia.com\/blog\/tcs-20-from-01-10-2023-on-foreign-remittances\/#Comprehensive_study_about_TDS_TCS_chapter\" title=\"Comprehensive study about TDS &amp; TCS chapter\">Comprehensive study about TDS &amp; TCS chapter<\/a><\/li><\/ul><\/nav><\/div>\n<h3><span class=\"ez-toc-section\" id=\"Key_features_of_Tax_Collection_at_Source_20_percentage_from_01-10-2023_on_foreign_remittances\"><\/span><span style=\"color: #000080;\"><strong>Key features of Tax Collection at Source @ 20 percentage from 01-10-2023 on foreign remittances: <\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>1.\u00a0 \u00a0 Exemption threshold limit of Seven lakhs per FY per individual shall apply to remittance under liberalized remittance scheme. No threshold exemption for foreign tour packages<\/p>\n<p>2.\u00a0 \u00a0Tax collection at source Rates for LRS: On amount exceeding INR Seven lakhs, Tax collection at source shall be collected :<\/p>\n<p style=\"padding-left: 40px;\">i.\u00a0 \u00a0@ 0.5 percentage on remittance for education financed by loan taken from financial institution<\/p>\n<p style=\"padding-left: 40px;\">ii.\u00a0 \u00a0@ 5 percent on remittance for education not financed by financial institution.<\/p>\n<p style=\"padding-left: 40px;\">Note : Remittance for education shall include tickets for tuition fee and study abroad fee to educational institute and other day to day expenses under codes S0305\/S1107<\/p>\n<p style=\"padding-left: 40px;\">iii.\u00a0 \u00a0@ 5 percentage on remittance for medical treatment (including ticket of patient and his attendant and medical expenses and day to day expenses for medical treatment) made under Code S0304\/ S 1108.<\/p>\n<p style=\"padding-left: 40px;\">iv.\u00a0 @ 20 percent on any other purpose for remittance under liberalized remittance scheme.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Liberalized_Remittance_Scheme\"><\/span><span style=\"color: #000080;\"><strong>Liberalized Remittance Scheme:<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>3.\u00a0 \u00a0Liberalized Remittance Scheme: Remittances by individuals up to $ 25k for the below object are covered under liberalized remittance scheme attracting Tax Collection at Source on remittance exceeding INR Seven lakhs:<\/p>\n<p>\u00b7\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Donation or Gift.<\/p>\n<p>\u00b7\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Expenses towards the Going foreign for employment<\/p>\n<p>\u00b7\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Expenses towards the Private visits to any country (except Nepal and Bhutan)<\/p>\n<p>\u00b7\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Expenses towards the maintenance of close relatives abroad<\/p>\n<p>\u00b7\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Expenses towards the Emigration<\/p>\n<p>\u00b7\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Expenses in connection with medical treatment abroad<\/p>\n<p>\u00b7\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Studies Abroad<\/p>\n<p>\u00b7\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Expenses towards the Travel for business, or attending a conference or specialised training or for meeting expenses for meeting medical expenses, or check-up abroad, or for accompanying as attendant to a patient going abroad for check-up or medical treatment.<\/p>\n<p>\u00b7\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Any other Current A\/c transaction<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Current_Account_Transactions\"><\/span><span style=\"color: #000080;\"><strong>Current Account Transactions<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>4.\u00a0 \u00a0 Current A\/c transactions means transaction other than capital account transactions &amp; include<\/p>\n<p style=\"padding-left: 40px;\">\u00b7\u00a0 \u00a0payments due as interest on loans and as net income from investments,<\/p>\n<p style=\"padding-left: 40px;\">\u00b7\u00a0 \u00a0payments due in connection with foreign trade, other current business, services, and short-term banking and credit facilities in the ordinary course of business<\/p>\n<p style=\"padding-left: 40px;\">\u00b7\u00a0 \u00a0expenses towards in connection with foreign travel, education and medical care of parents, spouse and children. and<\/p>\n<p style=\"padding-left: 40px;\">\u00b7\u00a0 remittances towards for living expenses of parents, spouse and children residing abroad,<\/p>\n<p>5.\u00a0 \u00a0Tax Collection at Source on expenditure via \u00a0international credit card while being overseas though has also been brought under liberalized remittance scheme by omissions of Foreign Exchange Management (Current Account Transactions) Rules, 2000 under Rule 7 However Tax Collection At Source has been suspended till further orders by guidelines issued under Circular 10\/2023 dated 30-06-2023. Tax Collection At Source on expenditure via ATM or international debit card is covered by liberalized remittance scheme and shall attract Tax Collection At Source.<\/p>\n<p>6.\u00a0 \u00a0Expenses of business visit of employee are borne by entity. Any kind of these expenses shall be treated outside liberalized remittance scheme &amp; may be allowed without threshold limit &amp; shall not attract Tax Collection At Source<\/p>\n<p style=\"text-align: justify; background: white; margin: 7.5pt 0in 7.5pt 0in;\"><span style=\"font-size: 10.0pt; line-height: 115%; font-family: 'Times New Roman',serif; color: #212121;\">6A. Finance Ministry issued order: Big relief to credit card expenses Finance Ministry say that spending abroad via International Credit Cards will not come under the LRS Scheme. So there will be no deduction of tax on it.<\/span><\/p>\n<p>6B. It&#8217;s important to understand the distinctions between payment methods, though, as LRS requirements do apply to both debit and credit cards. Depending on the particular goal of the transaction, these cards may or may not be charged to TCS.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Tax_Collection_At_Source_5\"><\/span><span style=\"color: #000080;\"><strong>Tax Collection At Source @ 5%<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>7.\u00a0 Tax Collection At Source @ 5% shall apply on Foreign tour packages up to INR Seven lakhs &amp; Tax Collection At Source @ 20 percent shall apply on foreign tour packages above INR 20 lakhs. Foreign tour package should expenditure on any two of followings:<\/p>\n<p>\u00b7\u00a0 \u00a0Hotel accommodation (with or without food)\/boarding\/lodging<\/p>\n<p>\u00b7\u00a0 \u00a0Foreign travel ticket<\/p>\n<p>\u00b7\u00a0 \u00a0any other expense of the same nature or in relation thereto.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"What_is_Tax_Collection_At_Source_applicability_of_threshold_limit_of_Seven_lakhs\"><\/span><strong><span style=\"color: #000080;\">What is Tax Collection At Source applicability of threshold limit of Seven lakhs :<\/span><\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>\u00b7\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 The Seven Lakhs threshold limit will be applied to all foreign remittances under the liberalised remittance programme for medical treatment, education, or any other specific goal, and it won&#8217;t be applied to each reason separately. However, remittances under the liberalised remittance system cannot be combined with the seven lakhs threshold limit in the case of foreign travel packages.<\/p>\n<p>\u00b7\u00a0 \u00a0 The Seven Lakhs Over threshold Limit for the Liberalised Remittance Scheme will be applicable for the entire Financial Year 2023\u20132024 and not just for the period after January\u201307\u201323 or January\u201310, 2023.<\/p>\n<p>\u00b7 Basic Benchmark seven lakhs Rs limit applies to all remitters, not just AD. Until the Reserve Bank of India creates a new system, undertakings in this regard may be acquired from remitters by AD for remittances via other dealers. Key note is that foreign remitter shall be responsible for false undertaking provided by him if any<\/p>\n<p>9.\u00a0 \u00a0Where purchase of foreign tour package is covered by liberalized remittance scheme also, Tax Collection At Source shall apply treating the same as foreign tour package &amp; not remittance under liberalized remittance scheme.<\/p>\n<p>10. Tax Collection At Source on foreign remittance shall not apply where tax deducted at source is applicable<\/p>\n<p>11.\u00a0 Tax Collection At Source on foreign remittance shall not apply to non-resident who does not have make any kind of establishment in India.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"TDS_TCS_Rate_chart_for_FY_2024-25\"><\/span><a href=\"https:\/\/carajput.com\/archives\/tcs-and-tcs-rate-chart-for-fy-2024-25.pdf\" data-cke-saved-href=\"https:\/\/carajput.com\/archives\/tcs-and-tcs-rate-chart-for-fy-2024-25.pdf\"><strong>TDS &amp; TCS Rate chart for FY 2024-25<\/strong><\/a><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<h2><span class=\"ez-toc-section\" id=\"Comprehensive_study_about_TDS_TCS_chapter\"><\/span><a href=\"https:\/\/carajput.com\/publications\/comprehensive-study-about-tds-and-tcs-chapter.pdf\"><span style=\"color: #000080;\">Comprehensive study about TDS &amp; TCS chapter<\/span><\/a><span class=\"ez-toc-section-end\"><\/span><\/h2>\n","protected":false},"excerpt":{"rendered":"<p>Key features of Tax Collection at Source @ 20 percentage from 01-10-2023 on foreign remittances: 1.\u00a0 \u00a0 Exemption threshold limit of Seven lakhs per FY per individual shall apply to remittance under liberalized remittance scheme. No threshold exemption for foreign tour packages 2.\u00a0 \u00a0Tax collection at source Rates for LRS: On amount exceeding INR Seven &hellip;<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_mi_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[100],"tags":[972,728],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/posts\/6316"}],"collection":[{"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/comments?post=6316"}],"version-history":[{"count":5,"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/posts\/6316\/revisions"}],"predecessor-version":[{"id":7389,"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/posts\/6316\/revisions\/7389"}],"wp:attachment":[{"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/media?parent=6316"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/categories?post=6316"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/tags?post=6316"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}