Team Blitz India
NEW DELHI: There will be no change in the rate of Tax Collection at Source (TCS) for all purposes under Liberalised Remittance Scheme (LRS) and for overseas travel tour packages, regardless of mode of payment, for amounts up to Rs 7 lakh per individual per annum. It has also been decided to give more time for the implementation of the revised TCS rates and for inclusion of credit card payments in LRS. The changes are detailed below.
Sub-section (1G) of section 206C of the Income-tax Act, 1961 (“the Act”) provides for TCS on (i) foreign remittance through the LRS and (ii) sale of overseas tour program package.
Through the Finance Act 2023, amendments were carried out in sub-section (1G) of section 206C of the Act. These amendments, inter alia, increased the rate of TCS from 5% to 20% for remittance under LRS as well as for purchase of overseas tour program package and removed the threshold of Rs 7 lakh for triggering TCS on LRS. These two changes were not applicable when the remittance is for education or medical purpose. These amendments were to take effect from 1st July 2023.
