| Question And Answer | |
|---|---|
| Subject: | Applicability of TCS on foreign remmitance |
| Category: | Income-Tax |
| Querist: | ANKUR AGRAWAL |
| Answered by: | Advocate Shashi Ashok Bekal |
| Tags: | TCS, TCS on foreign remittence |
| Date: | December 13, 2023 |
if a non-resident Indian residing in America transfers money from his own NRO/NRE A/c in India to his own bank A/c in America, whether provisions of TCS will be applicable?
As we understand, section 201(1G) (a) of the Income-tax Act, 1961 (Act) requires an authorized dealer to collect TCS on Foreign remittance under the Liberalized Remittance Scheme (LRS). It is pertinent to note that LRS is only applicable for residents and not non-residents. Therefore, in our view, the provisions of section 201(1G) (a) of the Act should not apply to non-residents.
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