{"id":7510,"date":"2025-02-03T13:01:48","date_gmt":"2025-02-03T13:01:48","guid":{"rendered":"https:\/\/www.extravelmoney.com\/blog\/?p=7510"},"modified":"2026-04-13T09:41:46","modified_gmt":"2026-04-13T09:41:46","slug":"new-tcs-proposals-on-international-money-transfer-in-budget-2025","status":"publish","type":"post","link":"https:\/\/www.extravelmoney.com\/blog\/new-tcs-proposals-on-international-money-transfer-in-budget-2025\/","title":{"rendered":"New TCS Proposals on International Money Transfer in Budget 2025"},"content":{"rendered":"\n
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Latest Update: New TCS Proposals on International Money Transfer in Budget 2026<\/a><\/strong><\/p>\n\n\n\n

The Union Budget 2025 has proposed significant reforms in the Tax Collected at Source (TCS) regulations. The new TCS rules shall be in effect starting 1 April 2025. These tax proposals aim to reduce the financial burden on taxpayers and simplify the remittance process for students and frequent travellers.<\/p>\n\n\n\n

Finance Minister Smt. Nirmala Sitaraman has proposed the following TCS reforms in the assembly:<\/p>\n\n\n\n

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  1. Removal of TCS on education-related foreign remittances financed by an education loan.<\/li>\n\n\n\n
  2. Increase of TCS threshold under the Liberalised Remittance Scheme (LRS) from \u20b97 lakh to \u20b910 lakh. <\/li>\n<\/ol>\n\n\n\n

    Also Read: How Much Money Can You Send Abroad from India Without Tax?<\/a><\/strong><\/p>\n\n\n\n

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    Comparison of Present and Proposed TCS Regime on Forex Transactions<\/h2>\n\n\n\n
    Type of Forex Transaction<\/strong><\/td>Present TCS Regime<\/strong><\/td>Proposed TCS Regime<\/strong><\/td><\/tr>
    <\/td>Below INR 7L<\/strong><\/td>Above INR 7L<\/strong><\/td>Below INR 10L<\/strong><\/td>Above INR 10L<\/strong><\/td><\/tr>
    Education Purposes (financed by education loan)<\/td>Not Applicable<\/td>0.5% of the amount above Rs. 7 lakhs<\/td>Not Applicable<\/td>Not Applicable<\/td><\/tr>
    Education Purposes (financed by other sources)<\/td>Not Applicable<\/td>5% of the amount above Rs. 7 lakhs<\/td>Not Applicable<\/td>5% of the amount above Rs. 10 lakhs<\/td><\/tr>
    Medical Treatment Abroad<\/td>Not Applicable<\/td>5% of the amount above Rs. 7 lakhs<\/td>Not Applicable<\/td>5% of the amount above Rs. 10 lakhs<\/td><\/tr>
    International Tour Packages and other related payments<\/td>5% of the total amount<\/td>20% of the total amount<\/td>5% of the total amount<\/td>20% of the total amount<\/td><\/tr>
    All Other Purposes<\/td>Not Applicable<\/td>20% of the amount above Rs. 7 lakhs<\/td>Not Applicable<\/td>20% of the amount above Rs. 10 lakhs<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n
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