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.
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.
What are the applicable taxes on gains and income in the US?
The two main streams of income from investments in stocks are dividend and capital gains.Dividend Income As per the India-US Double Taxation Avoidance Agreement (‘DTAA’), flat tax rate of 25% is applicable on dividend income earned, subject to ...