Everything about the new TCS limits

TCS is collected when you send money abroad while shopping, buying assets or investing in the US stock market

Tax Collected at Source

New TCS limits

5% for remittances exceeding ₹7 lakh. 

Before 1st July 2023

From 1st July 2023 onwards

20% of remittance amount

The bank provides a TCS certificate at the time of deduction, which is used while claiming TCS in your Income Tax Returns

Tax benefits

This TCS can be claimed as an income tax refund or a credit availed when filing the income tax return

Example

If your current Tax liability is ₹2 Lakhs and you invest ₹1 lakh

TCS would be ₹20,000. 

While filing ITR,

New Net tax liability :

₹2,00,000 - ₹20,000 = 1,80,000

While the TCS proposed in the budget seems steep, you can claim a refund at the end of the financial year.

So start investing in US Stocks real-time at zero commission.