How can we save TCS on foreign remittance?

Can TCS on foreign remittance be claimed?

TCS will increase the cost of foreign remittance, as well as the cost of foreign travel; you can recover the cost of TCS on claiming the TCS as tax credit while filing your Income Tax Return.

How do I pay TCS on foreign remittance?

Foreign remittance above Rs 7 lakh will attract TCS, provided the tax has not already been deducted at source (TDS) on that same amount. TCS will be applicable on the amount if it is in excess of Rs 7 lakh in a financial year and not on the total amount.

How is TCS calculated on foreign remittance?

1) TCS of 5% is deducted only on the amount above 7 lakhs. For example, if you remit Rs 15 lakh in FY 2021, 5% will be calculated on the amount exceeding the existing threshold i.e. – 8 lakhs. Therefore, Rs 40,000 will be deducted as TCS. 2) Any remittance made in FY 2021 will count towards the 7 lakh threshold.

Is TCS applicable on NRO remittance?

Under Section 206C(1G), TCS is not applicable on money remitted by NRIs from their NRO account to NRE/ foreign account. Hence, NRIs can easily remit their Indian earnings, like pension, dividend, salary, rent, investment, profits from businesses permitted for repatriation, distribution from any type of deposits, etc.

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How can I claim TCS in income tax?

Credit of TCS during the year has to be claimed in your ITR in a manner similar to that for TDS. To claim the TDS credit in ITR-1 available on the online platform, the details have to be filled in the Tax details’ section of the form.

Who is liable to collect TCS?

Tax collected at source (TCS) is the tax payable by a seller which he collects from the buyer at the time of sale. Section 206C of the Income-tax act governs the goods on which the seller has to collect tax from the purchasers.

What is TCS for international transaction?

Tax Collected at Source (TCS) on LRS transactions is a regulatory requirement amended under the section 206C of Finance Act 2020.

Is TCS applicable to non residents?

TCS is also applicable on goods sold by the non-resident seller provided it is not import of goods. Turnover from business activities will only be considered (interpretation). TCS is required to be collected from a buyer only if receipts from him against the sale of goods in the current financial year exceed Rs.

Is TCS amount refundable?

Yes, TCS can be claimed as refund in bank account.