Date for applicability of new TCS rate extended to 1st October,2023.
The new Tax Collection at Source (TCS) rule will come into effect from October 1, 2023, Ministry of Finance said in a notification on June 28, 2023. “The increase in TCS rates; which were to come into effect from 1st July, 2023 shall now come into effect from 1st October, 2023 with the modification as in (ii) above,” the ministry said. “Till 30th September, 2023, earlier rates (prior to amendment by the Finance Act 2023) shall continue to apply,” it added.
Budget 2023 has raised Tax Collection at Source (TCS) on foreign remittance through Liberalised Remittance Scheme (LRS) to 20 per cent from the existing 5 per cent, except in certain cases. The higher rate of TCS was about to kick in from July 1, 2023.