• What is LRS:
o Under this Scheme, all resident individuals, including minors, are allowed to freely remit / avail foreign exchange facility up to USD
2,50,000 per financial year (April – March) for any permissible current or capital account transaction or a combination of both
• What is the new tax implications on all forex transactions under LRS:
o As per the new Tax Collected at Source (TCS) effective from October 1, 2020, 5% TCS shall be applicable on aggregate forex
transactions under LRS exceeding INR 7 Lakhs in a financial year
• What is the applicable TCS if PAN card is not updated on Bank’s records:
o Foreign Exchange facility under LRS can be availed only if your PAN is updated on Bank’s record
• If remitter/ customer can avail tax credit of the TCS?
o Yes, remitter / customer can claim credit for the tax collected by the Bank while filing for their tax returns