Personal Finance Myth #47

TCS is an additional tax on foreign remittance | Vrid
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TCS is an additional tax on foreign remittance

TCS (Tax Collected at Source) is not an extra tax. But it’s a method of collecting tax in advance. 

It is deducted by the authorised bank or remittance service provider while transferring money internationally. They credit the TCS amount towards your final income tax liability. 

If your tax liability is lower than the TCS amount, you can claim a refund while filing your income tax return. Therefore, TCS on foreign remittance is not an additional tax burden but a mechanism to ensure tax compliance. 

We have discussed the concept of TCS on foreign remittance and latest announcement made by the Indian Government on TCS here.

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