As the major tax provision kicks off from next month, one needs to keep a tap on their foreign remittances if any as they will now attract TCS at the rate of 5% subject to riders beginning October 2020.
This is for money sent abroad as part of LRS(liberalized remittance scheme).
Conditions when TCS on foreign remittance shall not apply
1. If the remitted amount is less than Rs. 7 lakh
2. Not apply for tour package
3. If the purpose is not for buying a tour package then for any amount above this threshold, TCS shall apply.
4. For students, TCS @ 0.5% shall be charged for remittance made over Rs. 7 lakhs.
5. Also, in case the person is subject to TDS under the income tax Act then the provision of TCS shall not apply.