What is Tax Collected at Source (TCS)?

Tax Collected at Source (TCS) is an income tax collected on international money transfers falling under the Liberalized Remittance scheme (L...

When has TCS come into effect?

TCS came into effect from October 1, 2020. However, all international money transfers under LRS made from April 1, 2020 would be considered ...

What is Liberalized Remittance Scheme (LRS) of RBI?

LRS is a scheme that allows a resident individual to send money internationally up to USD 250,000 every financial year.

What percentage of TCS is applicable on money transfers?

A 5% TCS is applicable for all international money transfers under LRS more than INR 7,00,000 in a financial year including educational paym...

Who is responsible to collect the TCS?

YES Bank, being the authorized dealer, will collect the TCS at a 5% rate on international money transfers exceeding INR 7,00,000 under secti...

On which money transfers, is TCS applicable?

A 5% TCS is applicable on all international money transfers exceeding INR 7,00,000 in a financial year under LRS.

What percentage of TCS is applicable on money transfers for education purpose?

As per current regulations, If the money transfer is for educational purposes through a loan obtained from any financial institution as defi...

How will the threshold limit of INR 7,00,000 be computed for FY 2020-21?

The TCS is applicable on all international money transfers under LRS from October 1, 2020. However, for tracking the total threshold limit o...

Can I get any tax rebate?

Yes, TCS paid can be adjusted against tax payable by filing the income tax returns (ITR) in India subject to applicable income tax provision...

Can I get the TCS refunded if the money transfer is cancelled or refunded?

Please note that Western Union or YES bank cannot refund the TCS collected and paid to the government. However, you can claim a refund when ...

Are there any exemptions from TCS?

Yes, there are the following exemptions from TCS:Money transfers sent via Western Union and other YES Bank channels, or international paymen...

Is TCS applicable on tax paid income?

The TCS can be set off against the overall liability of the taxpayer. If a parent has already paid tax on their income and is simply paying ...

Is there any relaxation on TCS rates due to the COVID-19 situation?

No, there is no relaxation on TCS rates due to COVID-19 situation. Therefore, it needs to be collected at a specified rate of 5%.Some exampl...