What is TCS? How does it work for the Liberalised Remittance Scheme?

Tax Collected at Source (TCS) on LRS transactions is a regulatory requirement amended under
the section 206C of Finance Act 2020.

The TCS charges are applicable on debit card remittance transactions beyond aggregate
remittance spends of ₹7 lakhs in a year (March - April). For the purpose of computing, the limit of 7 lakhs, even remittances made under LRS through other channels have to be considered.