The revised TCS rates (as per the Finance Act, 2023) on Forex drawls/ remittances by Resident Individuals under Liberalised Remittance Scheme (LRS) effective from 1st October 2023, which is as under.
| Sr. No | Type of Remittance Abroad | New TCS rate (w.e.f 1st October 2023) |
|---|---|---|
| 1 | For the purpose of education, if the amount being remitted is from a loan obtained from any specified institution | Threshold limit – NIL upto Rs. 7 lakh. 0.5% of the amount or the aggregate amount over Rs. 7 lakh per financial year |
| 2 | For the purpose of education, other than (1) above (or) for the purpose of medical treatment. | Threshold limit – NIL upto Rs. 7 lakh. 5% of the amount or the aggregate amount over Rs. 7 lakh per financial year. |
| 3 | Any other purpose under LRS | Threshold limit – NIL upto Rs. 7 lakh 20% of the amount or the aggregate amount over Rs. 7 lakh per financial year |
| 4 | Overseas tour packags | 5% upto Rs. 7 lakh* 20% of the amount or the aggregate amount over Rs. 7 lakh* per financial year |
| 5 | Resident Individual falling under ”Specified Person”category/Non-PAN case/ inoperative PAN case | Double the normal rate of TCS or 5%, whichever is higher. However, TCS rate shall not exceed 20%. |
Note:
- Threshold limit of Rs. 7 lakh per FY for LRS as mentioned in point no. (1), (2) & (3) is a combined limit on all categories of LRS payments, through all modes of payments, regardless of the purpose.
- Threshold limits as mentioned in point no. (1), (2) & (3) are remittances/forex drawls availed under LRS across all Authorised Dealers (ADs).
- LRS remittance processed by the Bank as an Authorised Dealer towards air travel ticket booking or hotel booking by a resident individual customer would be subject to TCS as per the rate provided as mentioned in point no.(3) of the above table.
- (*) Threshold limit for Rs. 7 lakh per FY for purchase of Overseas tour program package is independent of the threshold limit mentioned in point no.(1).
Definition of Specified Person:
“Specified Person” means a person who satisfies both the following conditions
- He/She has not furnished the return of income for the assessment year relevant to the previous year immediately preceding the financial year in which tax is required to be deducted/collected. The previous year to be counted is required to be the one whose return filing date under sub-section (1) of section 139 has expired.
- The aggregate tax deducted at source and tax collected at source is Rupees Fifty thousand or more in that previous year.