What is the TCS on foreign remittances?
Payments for foreign tour packages are also subject to the 5% TCS, without any exemption threshold
Payments for foreign education originating an education loan from a financial institution in India are subject to a lower 0.5% TCS
Indian residents can remit up to USD 250,000 under the LRS every year for various purposes such as medical treatment, gifts, maintenance of relatives abroad, foreign education and investment in real estate, stocks and bonds. Budget 2020 introduced a tax collected at source (TCS) at the rate of 5% on all remittances under the Liberalised Remittance Scheme (LRS) of the RBI above ₹7 lakh. Payments for foreign tour packages are also subject to the 5% TCS, without any exemption threshold. The tax goes into effect from 1st October 2020.