Are there any taxes or deductions at the time of remittance?

According to Budget 2020, under LRS, a 5% Tax Collection at Source (TCS) is applicable on remittances aggregating to ₹7 lakh or more in a financial year.

The TCS also applies on LRS transactions exceeding ₹7 lakh if a foreign exchange facility is availed through cash withdrawal at Branches or for loading forex cards. For instance, if the total foreign exchange facility availed under LRS in a financial year is ₹10 lakh, a TCS at 5% will be applicable on ₹3 lakh amounting to ₹15,000.

In cases where the amount is remitted for the purpose of pursuing education through a loan obtained from any financial institute, rate of TCS shall be 0.5% on the amount exceeding ₹7 lakhs.

Likewise, for remittances to foreign tour operators through the Bank; 5% TCS of the total amount remitted shall be applicable and the amount remitted will not be subsumed under the threshold limit of ₹7 lakh.

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What are the charges applied for the remittance?
Remittance charges vary from bank-to-bank. We do not charge anything for the remittance. Our broker-dealer partner in the US charges a one-time setup fee of $5.00 for the first remittance. This is for tax certification for non-US accounts.
Is there any minimum remittance amount?
There is no minimum remittance amount, but depending on the product, there might be minimum fresh and additional purchase limits.
Which banks are supported for remittance?
Currently, the banks supported are ICICI Bank, IDFC First Bank, HDFC Bank, RBL Bank, Axis Bank and Kotak Mahindra Bank. We are in the process of adding more banks to this list. Currently, Online Remittances are supported by ICICI Bank and HDFC Bank.
Are there any bank-wise remittance limits?
A few banks have placed limits on online remittances. Please check with your client’s bank relationship manager.
Is the authorised bank required to check permissibility of remittances based on nature of transaction or allow the same based on remitters declaration?
The authorised dealer is guided by the nature of transaction as declared by the resident remitter in Form A2 and will thereafter certify that the remittance is in conformity with the instructions issued by the RBI in this regard from time to time. ...

Are there any taxes or deductions at the time of remittance?

Are there any taxes or deductions at the time of remittance?

Related Articles

What are the charges applied for the remittance?

Is there any minimum remittance amount?

Which banks are supported for remittance?

Are there any bank-wise remittance limits?

Is the authorised bank required to check permissibility of remittances based on nature of transaction or allow the same based on remitters declaration?