Foreign Remittance New Tax Rule – Tax Collected at Source

Foreign Remittance New Tax Rule – Tax Collected at Source

Finances News

Foreign Remittance Tax rules are changed. Now you need to pay tax when you transfer money abroad. The new rule will be effective from Oct 1, 2020. The provision for a new rule of Tax Collected at Source (TCS) was made in Budget 2020-21. There are many cases where you need to send foreign remittances such as for meeting education expenses, medical expenses, buying property abroad or stock market investments. The Liberalised Remittance Scheme (LRS) and RBI rules permit up to $2.5 Lakh of foreign remittance to the individual. This means you can remit up to $2.5 Lakh x Rs.76