Parents may use education loan, dollar assets to lessen TCS impact

Travellers may split forex purchases, use international cards on foreign sites, and book various elements of the trip separately

Starting from October 1, 2023, the new Tax Collected at Source (TCS) rates have come into force for remitting money abroad from India under the Liberalised Remittance Scheme (LRS). The new rates were kept in abeyance for three months but will now increase for several types of transactions.

Key changes  

TCS of 20 per cent will now apply to payments made using forex cards, foreign currency purchases, and cross-border wire transfers above Rs 7 lakh (except for education and medical purposes).

Says Sudarshan Motwani, founder & chief executive officer (CEO), BookMyForex.com: “In the current scenario, there is no TCS on