Effective October 1st, 2020, money transfers, under LRS, is subject to TCS under section 206C of the Finance Act 2020.
While initiating a money transfer request under LRS, please ensure the account is sufficiently funded to cover the transfer amount, TCS amount, and any other taxes/charges as applicable. In case of insufficient balances, the transfer will not be processed.
Applicable Tax (TCS) is 5% of the transfer amount.
This includes tuition fees and education loans. Applicable Tax (TCS) is 5% of the money transfer sent above INR 7 lacs during the financial year
Yes. While TCS, once collected, cannot be refunded by the bank, you simply need to file your income tax returns (ITR) with income tax authorities to claim your refund or adjust the TCS amount at the time of filing.
No. TCS doesn’t affect Western Union’s promise of international money transfers. You can continue to send money to a bank account overseas at westernunion.com for 0 transfer fee1 paying from your bank account.
Yes, it’s applicable with Permanent Account Number (PAN) level.
It’s to be collected when the sender pays for any overseas money transfer under LRS.
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1 Western Union also makes money from currency exchange. When choosing a money transmitter, carefully compare both transfer fees and exchange rates. Fees, foreign exchange rates and taxes may vary by brand, channel, and location based on a number of factors. Fees and rates subject to change without notice.