There will be no tax collection at source (TCS) on foreign remittances of up to Rs 7 lakh per financial year, the Ministry of Finance said. In a notification released on June 28, 2023, the ministry clarified, “Threshold of Rs 7 Lakh per financial year per individual in clause (i) of sub-section (1G) of section 206C shall be restored for TCS on all categories of LRS payments, through all modes of payment, regardless of the purpose. Thus, for first Rs 7 Lakh remittance under LRS there shall be no TCS”. Beyond the Rs 7 lakh threshold, TCS will be levied at different rates, depending on the nature of transactions.
