Actually, Finance Minister Nirmala Sitharaman has included ‘Liberalized Remittance Scheme’ (Liberalized Remittance Scheme) in the budget.LRS) has announced to reduce ‘Tax Collected at Source’ (TCS) on education from 5% to 2%. This has reduced the burden of pursuing foreign education to a great extent. This deduction reduces the initial cost for families sending money abroad, as there is no interest on education loans. TCS guess not. A limit of Rs 10 lakh has been set on other remittances before tax is imposed.

What is the TCS applicable on money sent abroad?

Under LRS, when a person sends money abroad, the banks or Authorized Dealers TCS is collected by. This tax is deducted at the time of transaction even before sending the money abroad. TCS is applicable on many types of activities related to spending money abroad. This includes sending money to study abroad, transferring money for medical treatment, sending money to family living abroad, investing abroad and foreign tour packages. The money taken as TCS is not additional tax. It is adjusted against the final income tax liability of the individual every year while filing the return. This is the reason why refund of more money can also be taken. Earlier, on sending money abroad for higher education, 5% of the money was deducted as TCS, which has now been reduced to 2%. If you are also sending money abroad, then you will now have to pay less tax.