Question And Answer
Subject: Applicability of TCS on foreign remmitance
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Date: December 13, 2023
Query asked by ANKUR AGRAWAL

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?

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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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