Union Budget 2023: TCS on overseas tour packages to be increased to 20% from 5%
1. Sub-section (1G) of Section 206 provides for Tax Collection at Source (TCS) on foreign remittance through the Liberalised Remittance Scheme and on the sale of overseas tour packages.
2. The current TCS rate and the proposed TCS rate are as below:
a) In the case of education, if the amount being remitted out is a loan obtained from any financial institution as defined in section 80E, the present rate is 0.5% of the amount or the aggregate of the amounts in excess of Rs. 7 lakh. The proposed rate has remained unchanged in the budget.
b) In the case of education, other than above or for the purpose of medical treatment, the present rate is 5% of the amount or the aggregate of the amounts in excess of Rs. 7 lakh. The proposed rate remains unchanged.
c) Overseas tour package – Existing Rate 5% without any threshold limit. – Proposed Rate is now 20% without any threshold limit.
d) Any other case – 5% of the amount or the aggregate of the amounts in excess of Rs. 7 lakh. Proposed rate us now 20% without any threshold limit.
3. This amendment will take effect from 1st July, 2023.