This is to inform you that the increase in TCS rates u/s 206C(1G) of the Income Tax Act, 1961 shall be effective from 01.10.2023, as detailed below:
|
Sl. No
|
Type of Remittance
|
Present Rate
|
Modified rate
|
|
1
|
For the purpose of any education, if the amount being remitted out is a loan obtained from any financial institution as defined on section 80E
|
Nil upto Rs.7 Lakhs
0.5% of the amount or the aggregate of the amounts in excess of Rs.7 Lakhs
|
No change
|
|
2
|
For the purpose of education, other than (1) above
Or
For the purpose of medical treatment
|
Nil upto Rs.7 Lakhs
5% of the amount or the aggregate of the amounts in excess of Rs.7 Lakhs
|
No change
|
|
3
|
Overseas Tour package
|
5% without any threshold limit |
|
|
4
|
Any other case
|
Nil upto Rs.7 Lakhs
5% of the amount or aggregate of the amounts in excess of Rs.7 Lakhs
|
- Nil upto Rs.7 Lakhs
- 20% above Rs.7 Lakhs
|
The threshold of Rs.7 Lakhs for LRS is combined threshold for the applicability of TCS on LRS irrespective of the purpose of remittance.
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