Any money that I add, will that be counted as Foreign Remittance?

I have already made a transaction of 9.5 lakhs which will be counted as foreign remittance.
Under the Liberalised Remittance Scheme (LRS), into effect from 1st October 2020, a TCS (Tax Collected at Source) at a rate of 5% will be levied on any Foreign Remittance transaction of more than 7 lakhs.
So, will I have to pay TCS on any amount that I add?

Hi @Siddhant_Sahoo,

The 5% TCS will be collected on 2.5lakhs that you’ve transacted at the end of that business day.
And since you’ve now already crossed your 7lakhs threshold limit, any international transactions you make will incur a 5% TCS which will be collected at the end of the business day when you make a transaction. If you make multiple transactions in a day, TCS will be collected by on the combined amount at the end of the day.

PS- It’s not any money that you add into your account but the money that you spend internationally or make international transactions with will count for TCS collection.

Thanks,

Aditya

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