Is foreign Remittance Taxable in India | New TCS Rate on Foreign Remittance

Foreign remittance outside India are taxable with effect from 1 october 2020. The budget 2020 levies a TCS (tax collected at source) of 5% in case of foreign remittances in excess of Rs 7 lakh in a financial year. In case of remittances on account of educational loan, the TCS is 0.5% for remittance in excess of Rs 7 lakh in a financial year. However, a TCS of 5% applies on the full amount paid for purchase of an overseas tour program package. You can claim a refund of the TCS at the time of filing of your income tax return. You can also offset the TCS credit against your income tax liability at the time of filing of your ITR.