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

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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      A few banks have placed limits on online remittances. Please check with your client’s bank relationship manager.

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