TCS on Foreign Remittances

TCS on Foreign Remittances

Applicability of Tax Collected at Source (TCS) on Forex

1.     TCS is applicable on foreign exchange remittances under LRS, including travel, education, and investments.

2.     TCS Rates on Foreign Transactions:

• 5% TCS on foreign remittances exceeding INR 7 lakh per financial year.
• 0.5% TCS for education forex transactions if financed by a loan.
• 20% TCS on foreign tour packages, regardless of the amount.

3.     TCS Exemptions & Adjustments:

• Taxpayers can claim TCS credit when filing Income Tax Returns (ITR).

No TCS below INR 7 lakh, except for forex tour packages