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Budget 2023: Foreign Remittances, Sale of Overseas Tour Packages to Attract 20% TCS

Home >> Blog >> Budget 2023: Foreign Remittances, Sale of Overseas Tour Packages to Attract 20% TCS

Foreign Remittances, Sale of Overseas Tour Packages to Attract 20% TCS

The Union Budget 2023 proposes a Tax Collection at Source (TCS) for foreign outward remittance under LRS (other than for Education and medical purpose) of 20% applicable from July 1, 2023. This will come into effect after the bill is passed. Before this proposal, the TCS of 5% was applicable on foreign outward remittances above INR 7 lakhs.

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For foreign remittances for other purposes under LRS and the purchase of overseas tour programs, the TCS rates will get increased to 20% from the previously applicable 5% from 1st July 2023.

These changes will take place from 1 July 2023

 
 
Type of remittance Present TCS Rate Present TCS RateProposed TCS Rate

For the purpose of education, (education loan)

0.5% of the amount or the aggregate of the amounts in excess of Rs. 7 Lakh

No change

For the purpose of education, other than 1st use case

5% of the amount or the aggregate of the amounts in excess of Rs. 7 Lakh

No change

Overseas tour package

5% without any threshold limit

20% without threshold

Any other case

5% of the amount or the aggregate of the amounts in excess of Rs. 7 Lakh

20% without threshold

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