Lending money out? Pay 20% tax at source

Minus education fees and health expenses, money sent abroad for any other purpose will now attract a steep 20% tax collected at source (TCS). The upfront payment can be recouped when you file your income tax returns. So, whether you send expense money to your child abroad, or buy a house overseas or opt for a foreign tour package or invest in global stocks and bonds, you will need to factor in the 20% TCS — a rule that could potentially impact your cash flows.



February 02, 2023 at 03:03AM