New Delhi, India – The government has increased the tax collection at source (TCS) threshold on overseas remittances from ₹7 lakh to ₹10 lakh, a move expected to benefit outbound tourism, foreign education, and the airline industry.
Under the revised norms, individuals remitting up to ₹10 lakh abroad under the Liberalised Remittance Scheme (LRS) will not be subject to TCS. This is a relief for those sending money for travel, education, or investments overseas. Additionally, in a major relaxation for students, the government has removed TCS on remittances for education if funded through an educational loan.
This policy change is anticipated to boost the travel and foreign exchange sectors by reducing the tax burden on overseas transactions. Industry experts believe it will encourage more students to pursue education abroad and make foreign travel more accessible for Indian tourists.
The increase in the threshold aligns with the government’s efforts to ease financial constraints on citizens while ensuring compliance with tax regulations.