A new sub-section (1G) in Section 206C has been created for this purpose. However, if a remittance is made for a loan taken for higher education, the TCS rate applied is 0.5% of the amount remitted. Related Article: Your child’s foreign education: can you afford it? TCS on foreign remittanceĪccording to the recent amendments in the Finance Bill (2020), under the Liberalised Remittance Scheme (LRS) that came into effect from 1 October 2020, TCS on foreign remittance at the rate of 5% will be imposed on the money remitted outside India. Providing any type of service other than one on which TDS has been adjusted exceeding Rs 2 lakh.Selling any goods in cash exceeding Rs 2 lakh.Sale of own car (new or old) when sale value is above Rs 10 lakh.Bullion if amount exceeds Rs 2 lakh or jewellery if amount exceeds Rs 5 lakh (or on any amount received in cash).Parking lot, toll, mining and quarrying.Minerals like coal or lignite or iron ore.Any forest produce not being timber or tendu leaves.Timber bought by any means, other than one under a forest lease.Here are some items on which TCS is applicable, other than foreign remittance: When receipt of such amount from buyer is received, whichever is first.

When an amount is debited which is payable by the buyer, or.

TCS will be collected in the following circumstances: Who is liable to collect TCS?Īll sellers of some specific goods shall collect TCS from the buyers of the goods. This happens when a person selling those items is responsible for collecting tax from the buyer at a predetermined rate and depositing the amount with the government. Tax Collected at Source (TCS) is a form of income tax procured by the seller of certain goods from the buyer. There is another type of tax, known as Tax Collected at Source (TCS), that is paid by buyers in the case of the purchase of some products. Income tax, Goods and Services Tax (GST), property tax, etc., are some common examples. In India, there is a wide category of taxes that you pay to the government.

The Change by Remittance Girl