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TCS on LRS
As per Union Budget and as per section 206C(1G) of the Income-tax Act, 1961, 20%TCS (Tax Collected at Source) has to be collected from the customer when the value of remittance made under the LRS Scheme of RBI exceeds INR 7,00,000 for the financial year. TCS monitoring & computation is done at individual PAN number level. and not on account number basis.
Narration in the statement will be: TCS Mon DD, YYYY DCR Account number.
| Customer A | Makes a remittance of Rs 6,50,000 on Apr 01, 2024 | No TCS will be collected |
| Makes a remittance of Rs 75,000 in the same financial year | TCS will be applicable & will be collected on Rs 25,000 at the defined rate. |
Important points:
Please note:- Effective October 1st, 2023, new TCS rates will be applicable on all international remittances over the defined threshold during a fiscal year. For educational & medical spends, TCS will be collected @ 5% of the transaction value above INR 7 lacs. For all other spend categories, TCS will be collected @ 20% of the transaction value above INR 7 lacs
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