Is There Any Tax on Sending Money Abroad | BookMyForex | 003

Sending money abroad comes with some tax implications, depending on the purpose and amount of the transaction. These transactions are subject to Tax Collected at Source (TCS), which serves as an advance tax that sellers collect from the buyer.
All payments made under the Liberalised Remittance Scheme (LRS) are subjected to TCS. Now, here is the interesting part. If your transactions fall below Rs 7 Lacs in a financial year, there will be no tax implications. However, any transaction that exceeds this threshold will be subjected to a TCS rate of 20%.
That being said, there are specific scenarios where exceptions apply. If your overseas payments are for education or medical purposes and exceed Rs 7 Lacs, a TCS of just 5% applies to the exceeding amount. In case your overseas education is funded through a loan, the TCS reduces further to just 0.5% on the exceeding amount.
Hence, TCS on foreign remittances is not something to fret about, as it doesn't add an actual burden. It is essentially an advance payment that can be adjusted against your total income tax liability or can be claimed back entirely when filing your income tax returns.
Therefore, this tax shouldn't worry you. If you have any particular queries, please feel free to ask in the comments!
You can also read more about TCS on foreign remittances on our blog here www.bookmyfore...
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