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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.
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 Rate | Proposed 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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The information provided under this website is solely available at your request for informational purposes only, should not be interpreted as soliciting or advisement. We are not liable for any consequence of any action taken by the user relying on material/information provided under this website. In cases where the user has any legal issues, he/she in all cases must seek independent legal advice
