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New Tax Rules: Big News! 20% TCS will be applicable on all these expenses from next month, new rule will be applicable from October 1

New tax rules: The new Tax Collection at Source (TCS) rates will be applicable from October 1, 2023. Whether you are going on a foreign trip, investing in foreign stocks, mutual funds or cryptocurrencies, or going abroad for higher education, you will have to pay TCS if you spend more than the prescribed amount in a financial year. Gulfhindi.com Explains for you the new TCS system starting from next month.

The 20% TCS rule will be applicable from October 1, 2023.

Under the Liberalized Remittance Scheme (LRS) of the Reserve Bank of India (RBI), you can remit up to $250,000 in a financial year. From October 1, 2023, 20% TCS will be applicable on all foreign remittances to the extent of more than Rs 7 lakh in a financial year.

What will be the TCS on remittance for foreign education from October 1, 2023?

Under LRS, there will be no TCS on remittances less than Rs 7 lakh for education expenses. If remittance above Rs 7 lakh is received from an approved financial institution, 0.5% TCS will be applicable.

New TCS rates on medical expenses from October 1, 2023:

5% TCS will be applicable on any outbound remittance for medical treatment crossing Rs 7 lakh.

How much will be the TCS on foreign travel packages from October 1, 2023?

5% TCS will be applicable on foreign travel packages up to Rs 7 lakh and 20% TCS will be applicable on more than Rs 7 lakh.

Nature of paymentTCS rates until September 30, 2023New TCS rates from October 1, 2023
LRS for education financed by loanNil up to Rs 7 lakhNil up to Rs 7 lakh
0.5% above Rs 7 Lakh0.5% above Rs 7 Lakh
LRS for medical treatment/education (other than financed by loan)Nil up to Rs 7 LakhNil up to Rs 7 Lakh
5% above Rs 7 Lakh5% above Rs 7 Lakh
LRS for other purposes such overseas investments or giftsNil up to Rs 7 LakhNil up to Rs 7 Lakh
5% above Rs 7 Lakh20% above Rs 7 Lakh
Purchase of Overseas tour program package5% (without threshold)5% till Rs 7 Lakh, 20% thereafter
Shyamu Maurya
Shyamu Maurya
Shyamu has done Degree in Fine Arts and has knowledge about bollywood industry. He started writing in 2018. Since then he has been associated with Informalnewz. In case of any complain or feedback, please contact me @informalnewz@gmail.com
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