As per the Union Budget 2020, a 5% Tax Collection at Source (TCS) is applicable for Resident Individuals on ICICI Bank Debit Card, Forex Prepaid Card, Outward Remittances and other Forex instruments totalling to Rs 7 lakh or more in a financial year, under the Liberalised Remittances Scheme (LRS). This change came into effect from Oct 01, 2020. As per the RBI guidelines, you can remit up to USD 2,50,000 in a financial year under LRS.
For all the transactions falling under LRS, TCS shall be applicable on the amount in excess of 7 lakh in a financial year. Below example is for your reference:
Once the threshold is crossed, TCS would be applicable on the incremental amount. The credit of tax collected will continue to the buyer.
7 lakh in a financial year. Below example is for your reference: 
No comments:
Post a Comment