New TCS will be charged on any kind of money, whether you send it abroad for expenses or for investment, in both the cases you will have to pay tax.
The money being sent for education will be charged half percent, the remaining money will be charged up to 5 percent.
If you send money abroad from the country, now you will have to pay tax on this also. The Income Tax Department has issued such a rule. It will come into effect from October 1. In this case, the country's largest bank State Bank of India (SBI) has also tweeted and informed about it.
The rule will be applicable from next month
According to the information, a new rule related to TCS (Tax Collected At Source) will be applicable from next month. The Income Tax Department has also decided to apply the Liberalized Remittance Scheme (LRS) under section 206C (1G), broadening the scope of TCS. Remittance means money sent out of the country. Whether this remittance is in the case of expenditure or investment, you will have to pay tax in both. It also has travel, educational and other expenses.
Seven lakh rupees will be taxed in a financial year
According to the new rule, if you send money of seven lakh rupees or more in any one financial year, then TCS will be applicable to you. This will be applicable from October itself. It is included in the Finance Act 2020. However, TCS will be levied only if the remittance is not from the income already covered by TDS. TCS will not be applicable if a person makes all the arrangements for a tour abroad by himself. If tax has already been paid in the form of TDS and TCS has been imposed, then the refund can be claimed.
RBI already has fixed amount rules
According to RBI's LRS scheme, transactions such as purchase of property abroad, investment, loan to NRIs, etc., can result in transactions up to $ 2.50 lakhs within a financial year. In addition, current account transactions up to $ 2.50 lakh are allowed in a financial year for employment visits, business trips, gifts, donations, medical treatment, care of relatives, etc.
Under the new provision, all money sent abroad will be taxed.
TCS will be applicable to all foreign remittances approved under the new provision. Under the new provision, TCS has different rates on remittances sent under LRS. For example, the money being sent for education will be charged at half a percent. If there is no PAN card, it will be five percent. If money is sent to someone else, if there is a PAN on it, if there is no percentage and if not, then 10 percent will be charged.
Overseas tour program will also be taxed
According to the rule, if the remittances are done for the Overseas Tour Program Package, then 5% TCS will be applicable to all remittances, even if the amount is less than 7 lakhs. A new provision has also been made that 0.1% TCS will be applicable on the sale of goods worth more than Rs 50 lakhs in a year.
Maharishi Aazaad said in an interview with National News Bureau, whenever a person goes overseas from our country for Job and studies they are going to improve their knowledge and make the nation proud. We should not claim Tax on education money as when Indian citizen earns abroad they already pay tax.
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