Re: TCS from remittance outside India

If a NRI sends remittance more than Rs.7 Lacs from his bank account maintained in India. Wether TCS of 5% will be applicable on him. Pleas Guide

The provisions of Tax Collected at Source on Foreign remittance should not be applicable to a Non-Resident remitting funds to and from India through their NRE bank account or through NRO bank account under the remittance of assets scheme.

 

However, as there is no clarity on the issue or any judicial pronouncement. The Hon’ble Income-tax Appellate Tribunal in the case of Arthur Anderson & Co (ITA No. 9125/Mum/95; order dated 29th July 2003) dealt with the principles of abundant caution i.e., ex abundanti cautela, when there is a doubt on application of TDS, it is advisable deduct TDS.

 

Therefore, it is advisable to pay TCS and adjust the same against the return of income.  

 

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