Spartan Posted February 2, 2023 Report Posted February 2, 2023 The Union Budget 2023 proposes a Tax Collection at Source (TCS) for foreign outward remittance under LRS (other than for Education and medical purpose) of 20% applicable from July 1, 2023. This will come into effect after the bill is passed. Before this proposal, the TCS of 5% was applicable on foreign outward remittances above INR 7 lakhs. We are explaining the concept of TCS and how it is adjusted with the below examples : Example 1: If you plan to remit Rs. 20,000 then a TCS (Tax collected at source) of Rs. 4,000 will be applicable from 1st July 2023. Assume the tax on your income is Rs. 5,000 then the TCS of Rs. 4,000 will be adjusted and you will need to additionally pay a tax of only Rs.1,000. Example 2: If you plan to remit Rs. 20,000 then a TCS (Tax collected at source) of Rs. 4,000 will be applicable. Assume the tax on your income is Rs. 3,000 then the TCS of Rs. 4,000 will be adjusted and you will get a refund of Rs. 1,000 as part of the filing of your yearly taxes. Note: The TCS is only applicable to foreign outward remittances (when the Indian Rupee gets converted into any foreign currency and sent outside India). It is not applicable to foreign inward remittances (money sent to India). Quote
Spartan Posted February 2, 2023 Author Report Posted February 2, 2023 How does this impact you from 1st July 2023? If you are converting INR to any other currency for the purpose of investment in listed equities or any other purpose: As per the newly proposed Budget 2023, the Bank is required to collect TCS at the rate of 20% on the aggregate remittance amount during a Financial Year. Example: An individual wants to remit and convert Rs. 10 Lakh to US Dollars. The bank would deduct a TCS of 20% on Rs. 10 Lakh. The TCS would be Rs. 2,00,000 in this case. If you are converting INR to any other currency for the purpose of an overseas tour package: As per the newly proposed Budget 2023, the Bank is required to collect TCS at the rate of 20% on the aggregate remittance amount during a Financial Year. Example: You want to convert Rs. 10 Lakh to US Dollars for spending on overseas tour/ travel etc. The bank would deduct a TCS of 20% on Rs. 10 Lakh. The TCS would be Rs. 2,00,000 in this case. For the purpose of overseas Education, and overseas medical treatment a TCS of 5% will be applicable for an aggregate amount in excess of INR 7 lacs being remitted. Quote
Spartan Posted February 2, 2023 Author Report Posted February 2, 2023 Note: The TCS deducted by the banks can be adjusted against the tax payable while filing income tax returns (ITR). The money deducted by the banks in taxes as TCS can be adjusted against your overall tax liability. This TCS can be claimed as an income tax refund or a credit can be availed at the time of filing the income tax return or for computing your advance taxes. The bank provides a TCS certificate at the time of deduction, which is used while claiming TCS in your ITR (Income Tax Return) filing. Example: An individual wants to remit Rs.4 lacs. A TCS of Rs. 80,000 will be deducted. While computing his/ her advance taxes or filing income tax returns, his overall tax liability is Rs. 2,00,000. As per the Income Tax rules, the individual can adjust the TCS against the overall tax liability. This means that the individual's net tax liability will be Rs. 1,20,000 only. Quote
Spartan Posted February 2, 2023 Author Report Posted February 2, 2023 India nunchi baitaki pampinchedi takkuve..chala mandi hawal route chuskuntaru... cash india lo ichi...ikkada $ teskodavam ekkuvaipotadi Quote
kittaya Posted February 2, 2023 Report Posted February 2, 2023 2 hours ago, Spartan said: India nunchi baitaki pampinchedi takkuve..chala mandi hawal route chuskuntaru... cash india lo ichi...ikkada $ teskodavam ekkuvaipotadi Daniki clause Edo untadhi.. Good... 7lakhs salaried ppl no tax man... That's so nice... Quote
Marsmangalodu Posted February 2, 2023 Report Posted February 2, 2023 dabbulu dengadame pani govt ki..inka akkada real estate ammi ikkadaki paisal techhukunte starting lone 20% cut cheskovali lol Quote
jefferson1 Posted February 2, 2023 Report Posted February 2, 2023 5 minutes ago, Marsmangalodu said: dabbulu dengadame pani govt ki..inka akkada real estate ammi ikkadaki paisal techhukunte starting lone 20% cut cheskovali lol i think if we bring money here , this country willll also tax right ? Quote
JackSeal Posted February 2, 2023 Report Posted February 2, 2023 5 minutes ago, Marsmangalodu said: dabbulu dengadame pani govt ki..inka akkada real estate ammi ikkadaki paisal techhukunte starting lone 20% cut cheskovali lol Inko 20% rupee depreciation lo fasak … so you can take back 60% of your sale proceedings Quote
JackSeal Posted February 2, 2023 Report Posted February 2, 2023 3 minutes ago, jefferson1 said: i think if we bring money here , this country willll also tax right ? 20% TCS + 20% Rupee depreciation + Vomerica Tax ante inka em migledhi Quote
jefferson1 Posted February 2, 2023 Report Posted February 2, 2023 2 minutes ago, JackSeal said: 20% TCS + 20% Rupee depreciation + Vomerica Tax ante inka em migledhi desi jugaad is best bro Quote
veerigadu Posted February 2, 2023 Report Posted February 2, 2023 India lo froperties undi ikkadaaaa US chitizen kids unna valla paristhithiiii sankaaaa nakipoyinatteeee inkaaaaaaa. Kondaaa yerrifruit in the making. People who stayed back in India are better off I guess. Their kids are atleast Indian chitizensss. They will enjoy luxury and grand parents love. Quote
veerigadu Posted February 2, 2023 Report Posted February 2, 2023 5 minutes ago, JackSeal said: 20% TCS + 20% Rupee depreciation + Vomerica Tax ante inka em migledhi Market value is not same as real value in India. Akkadaaa sagam egiripothadhiiii elagooo....nenuuu eppatiii nundooo telling dont invest in India ani...No body listening....Inkaaa @Anta Assamey Quote
Telugodura456 Posted February 2, 2023 Report Posted February 2, 2023 Too much. looting money. Then why dont these SOB give dual citizenship ? citizenship laakunttaame kaaka paisal kooda na ? Quote
veerigadu Posted February 2, 2023 Report Posted February 2, 2023 1 minute ago, Telugodura456 said: Too much. looting money. Then why dont these SOB give dual citizenship ? citizenship laakunttaame kaaka paisal kooda na ? Votes veyyani batch gurinchi no body cares ani pushpam party president Bandi TOM B telling. Over to @TOM_BHAYYA Quote
k2s Posted February 2, 2023 Report Posted February 2, 2023 2 hours ago, Spartan said: India nunchi baitaki pampinchedi takkuve..chala mandi hawal route chuskuntaru... cash india lo ichi...ikkada $ teskodavam ekkuvaipotadi already we are sending after tax amount only no.. why again pay tax on this ? barbarous man andukey find a way which generates income locally (india lo ne income generating source vethakali). and we should stop sending $ -> INR Quote
Recommended Posts
Join the conversation
You can post now and register later. If you have an account, sign in now to post with your account.