{"id":1247169,"date":"2023-07-03T10:13:16","date_gmt":"2023-07-03T04:43:16","guid":{"rendered":"https:\/\/trak.in\/stories\/?p=1247169"},"modified":"2023-07-03T10:15:53","modified_gmt":"2023-07-03T04:45:53","slug":"no-tcs-on-foreign-money-transfer-upto-rs-7-lakh-no-tcs-on-overseas-credit-card-use-check-full-list-of-new-tcs-rules","status":"publish","type":"post","link":"https:\/\/trak.in\/stories\/no-tcs-on-foreign-money-transfer-upto-rs-7-lakh-no-tcs-on-overseas-credit-card-use-check-full-list-of-new-tcs-rules\/","title":{"rendered":"No TCS On Foreign Money Transfer Upto Rs 7 Lakh, Overseas Credit Card Use (Check Full List Of New TCS Rules)"},"content":{"rendered":"\n

The Ministry of Finance has made an announcement regarding Tax Collection at Source (TCS) on foreign remittances and overseas tour packages. In a notification released on June 28, 2023, the ministry clarified that there will be no TCS on foreign remittances up to Rs 7 lakh per financial year for individuals. This threshold applies to all categories of payments under the Liberalised Remittance Scheme (LRS) regardless of the purpose. However, for amounts exceeding Rs 7 lakh, TCS will be levied at varying rates depending on the nature of the transactions.<\/p>\n\n\n\n

\"No<\/figure>\n\n\n\n

Revised TCS Rates for Overseas Tour Packages and Foreign Remittances Unveiled after Budget 2023<\/strong><\/p>\n\n\n\n

Additionally, the Ministry of Finance stated that a TCS of 5% will be imposed on overseas tour packages<\/a> up to Rs 7 lakh per individual per year. These changes were made after considering various comments and suggestions following the Budget 2023 announcement.<\/p>\n\n\n\n

Budget 2023 raised the TCS rate on foreign remittance through the LRS to 20% from the previous 5%, except for certain cases. These new rates were initially scheduled to take effect from July 1, 2023. The LRS allows individuals to remit up to $250,000 in a financial year for various purposes such as travel, business trips, employment abroad, medical treatments, education, gifts or donations, emigration, maintenance of close relatives, and other current account transactions.<\/p>\n\n\n\n

Under the LRS, there will be no TCS on foreign remittances below Rs 7 lakh for educational expenses. If remittances exceeding Rs 7 lakh are used for foreign education and obtained as a loan from an approved financial institution, a TCS of 0.5% will apply. Remittances beyond Rs 7 lakh spent on educational purposes not obtained through a loan will attract a TCS of 5%. For outward remittances related to medical treatment, a TCS of 5% will be applicable if the threshold crosses Rs 7 lakh.<\/p>\n\n\n\n

Revised TCS Rates for Overseas Remittances and Tour Packages<\/strong><\/p>\n\n\n\n

For all overseas outward remittances (such as bank account transfers, foreign exchange, and loading forex cards), except for medical and educational purposes, made through the LRS, a TCS of 20% will apply if the amount exceeds Rs 7 lakh in a financial year. These higher TCS rates will be effective from October 1, 2023. Regarding overseas tour packages, a TCS of 5% will be imposed if the amount is up to Rs 7 lakh. Beyond this limit, a TCS of 20% will be applicable starting from October 1, 2023.<\/p>\n\n\n\n

The Ministry clarified that the increase in TCS rates, initially planned for July 1, 2023, will now be effective from October 1, 2023. The earlier rates (prior to amendment by the Finance Act 2023) will continue to apply until September 30, 2023.<\/p>\n\n\n\n

Furthermore, the Ministry of Finance had previously announced that a TCS of 20% would be levied on individual payments above Rs 7 lakh made through international debit and credit cards from July 1, 2023. However, the implementation of this notification has been postponed to allow sufficient time for banks and card networks to establish the necessary IT-based solutions. As a result, transactions made with international credit cards while overseas will not be considered under the LRS and will not be subject to TCS.<\/p>\n\n\n\n

Russell Gaitonde, Partner at Deloitte India, welcomed this decision by the central government to suspend the earlier notification and exclude transactions made by Indian residents using international credit cards while traveling abroad from the LRS limit of US$250,000 per individual per financial year.<\/p>\n","protected":false},"excerpt":{"rendered":"

The Ministry of Finance has made an announcement regarding Tax Collection at Source (TCS) on foreign remittances and overseas tour packages. In a notification released on June 28, 2023, the ministry clarified that there will be no TCS on foreign remittances up to Rs 7 lakh per financial year for individuals. This threshold applies to […]<\/p>\n","protected":false},"author":26,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[21],"tags":[2028,2029,92],"class_list":["post-1247169","post","type-post","status-publish","format-standard","hentry","category-business","tag-new-tcs-rules","tag-tax-collection-at-source","tag-tcs"],"acf":[],"yoast_head":"\nNo TCS On Foreign Money Transfer Upto Rs 7 Lakh, Overseas Credit Card Use (Check Full List Of New TCS Rules) - Trak.in - Indian Business of Tech, Mobile & Startups<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/trak.in\/stories\/no-tcs-on-foreign-money-transfer-upto-rs-7-lakh-no-tcs-on-overseas-credit-card-use-check-full-list-of-new-tcs-rules\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"No TCS On Foreign Money Transfer Upto Rs 7 Lakh, Overseas Credit Card Use (Check Full List Of New TCS Rules) - Trak.in - Indian Business of Tech, Mobile & Startups\" \/>\n<meta property=\"og:description\" content=\"The Ministry of Finance has made an announcement regarding Tax Collection at Source (TCS) on foreign remittances and overseas tour packages. 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