Post Budget 2023 Quote: George Zachariah, CEO at ExTravelMoney.com

The rate of TCS for international remittance under LRS for education purposes continues to remain the same at 5% on transfers above Rs 7 Lakh and 0.5% if the source of funds is through a loan from a financial institution. It would have been good if the ceiling for TCS collection could have been raised to Rs 10 Lakhs. That would have benefitted students going to study abroad as most transfers under the education category fall between Rs 7 Lakh to Rs 10 Lakh. Currently, they can take credit or claim a refund when filing ITR but it’s an upfront overhead that strains their cash flow at the time of going abroad. Also, TCS for payment of overseas tour packages has seen a sharp increase from 5% to 20% for amounts above Rs 50 Lakhs. This move will impact the luxury travel industry, especially after its slow recovery since the onset of the COVID-19 pandemic.