📚 CBDT Circular · TCS / foreign remittance
Circular No. 10/2023 — Circular to remove difficulty in implementation of changes relating to TCS on Liberalised Remittance Scheme (LRS) and on purchase of overseas tour program package
In plain English
This eased the rollout of higher TCS on foreign remittances under the Liberalised Remittance Scheme (LRS) and on overseas tour packages. It confirmed a ₹7 lakh per year threshold below which no TCS applies for most LRS purposes, and deferred the increased rates. If you send money abroad (education, travel, investment) or buy a foreign tour package, this affects the TCS on your card/bank.
What it actually says
- No TCS on LRS remittances up to ₹7 lakh in a financial year (aggregated across authorised dealers) for most purposes.
- The increase in TCS rates was deferred to give banks and taxpayers time to adjust.
- TCS collected is adjustable against your tax or refundable in your ITR — keep the certificate.
Who this affects & what to do
For travellers & investors
Sending money abroad or buying a tour package? Watch the ₹7 lakh threshold; the TCS is creditable in your ITR.
For students / parents
Education remittances get concessional treatment — keep the TCS certificate to claim credit.
The law it touches
Section 206C(1G)
The official document
📄
Read the official CBDT circular (PDF)Official CBDT circular No. 10/2023 — opens the official PDF on incometaxindia.gov.in.
📄 View the PDF ↗
Our explanation is a plain-language summary for general understanding, not advice on your specific matter.
The official CBDT copy prevails. © EaseValue Advisors LLP.
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