Tax collected at source (TCS) on remitting money abroad under liberalized remittance scheme (LRS)

Tax collected at source (TCS) on remitting money abroad under liberalized remittance scheme (LRS)

by | Apr 20, 2024 | Blog

The tax collected at source (TCS) on remitting money abroad under a liberalized remittance scheme (LRS)

What is TCS? –

Tax Collected at source is the excess amount collected in the form of tax by the seller of goods from the buyer at the time of selling of goods over and above the sale price. Collected Tax then remitted to the government.

Is TCS applicable on foreign remittances? – Yes, as per section 206C(IG) of the Income Tax Act, 5% TCS is applicable on sending money out of India for more than Rs.7 lakhs in a financial year under the Liberalised Remittance Scheme of RBI. In the absence of Aadhaar or PAN while remitting money abroad, 10% TCS is charged by authorized dealers. This rule has been affected since Oct 1, 2020.

Are different overseas transactions eligible for TCS? – All permitted current & capital account transactions for individuals under LRS will attract TCS of 5% if the remittance amount is equal to or more than 7 lac rupees. All such remittances on which TCS is applicable are detailed below:

  1. Current Account Remittances:
  • Money sent for overseas education
  • Money sent for Gifts & Donations
  • Money sent for medical treatment abroad
  • Money sent for family maintenance
  • Money loaded & reloaded in travel card (Forex Card)

 

  1. Capital Account Remittances:
  • Loan to relatives
  • Investment in overseas shares & mutual funds
  • Investment in properties abroad

Please note that TCS(tax collected at source) at only 0.50% will be applicable for money sent for education purposes out of education loans taken from any financial institute. For example, if money remitted is Rs. 10 lacs out of an education loan taken from the bank, then TCS will be applicable at 0.50% on Rs. 3 lacs (Up to Rs. 7 Lacs TCS is not applicable) which comes to Rs. 1500/-.

Please also note that a limit of Rs. 7 lacs is for the entire financial year. For example, a person sends CAD 10000 (Rs. 6 Lacs at a conversion rate of Rs. 60 per CAD) from India to his son living in Canada on 05.04.2023 and sends CAD 10000 (Rs. 6 Lacs at a conversion rate of Rs. 60 per CAD) again on 10.10.2023 in the same financial year, then a TCS of 5% will be applicable on Rs. 5 Lacs (Total money sent Rs. 12 lacs, free limit Rs. 7 lacs, Taxed amount Rs.5 lacs.) which comes to Rs. 25000/-

Is TCS applicable for the import & export of goods & services? –

No, TCS is not applicable for the import & export of goods & services. TCS(tax collected at source) is also not applicable for overseas direct investment in joint ventures & wholly owned subsidiaries by private limited companies, limited companies, LLPs & registered partnership firms.

Is TCS also applicable on overseas tour packages? –

Yes, TCS( tax collected at source) at 5% is applicable on overseas tour packages and there is no free limit of Rs. 7 lacs. Any tour & travel operator should collect TCS at 5% from the buyer of the overseas tour package regardless of the amount of the package.

Can I claim a refund for TCS? –

Yes, the amount paid by the buyer of foreign exchange by way of TCS will be reflected in his 26AS statement after the seller files his TCS(The tax collected at source) Return. Buyer can claim the refund while filing an income tax return in case the buyer does not any tax liability. Thus, the TCS amount will be refunded after filing of Income Tax Return.

The latest changes in the TCS slab were announced by Hon’ble Finance Minister Nirmala Sitharaman in the union budget 2023-24 on 1st Feb 2023. Please note that all the changes mentioned below will become effective from 1St July 2023.

  • 20% TCS will be applicable for all overseas remittances except for education & medical expenditures that too without any threshold limit of 7 lacs.
  • Remittances under a liberalized remittance scheme for family maintenance and GIFT, Investment in shares, properties & mutual funds will attract a flat TCS rate of 20% irrespective of the amount of transaction.
  • Remittances for overseas education & medical treatment are kept the same as previously with only 5% TCS over 7 lacs of the transaction amount.
  • Overseas tour packages will now become costlier as the TCS limit has been increased to 20% irrespective of the amount from 5% earlier.

 

Let us understand this with the help of the table given below:

Nature of Overseas Transaction Existing TCS Rate New TCS Rate (with effect from 1st July 2023)
Remittance for education 5% on the amount over Rs. 7 Lakh Unchanged
Remittance for education (Where the source of funds is an education loan) 0.50% on the amount over Rs. 7 Lakh Unchanged
Remittance for family maintenance, GIFT, Investment in shares, properties & mutual funds 5% on the amount over Rs. 7 Lakh 20% without any threshold
Overseas tour package 5% without any threshold limit 20% without any threshold

 

 

 

 

 

 

 

 

Unveiling the World’s Strongest Currencies: The Global Economic Powerhouses of 2024

Unveiling the World’s Strongest Currencies: The Global Economic Powerhouses of 2024

by | Apr 19, 2024 | Blog

In the ever-changing landscape of global economies, currencies play a pivotal role in defining a nation’s financial strength and global influence. As we step into 2024, it’s time to explore the top 10 most powerful currencies that are dominating the international financial markets. From the mighty currencies of economic giants to the surprising contenders, this blog unveils the highest-valued currencies in the world and the countries that wield them.

  1. Kuwaiti Dinar (KWD)

With an exchange rate of 1 KWD to 3.29 USD, the Kuwaiti Dinar proudly claims its spot as the strongest currency in the world. Boasting a robust oil-dependent economy and a prudent fiscal policy, Kuwait’s currency has maintained its stability and immense purchasing power, securing its place at the top.

  1. Bahraini Dinar (BHD)

Ranked second on our list, the Bahraini Dinar stands tall with an exchange rate of 1 BHD to 2.65 USD. Benefiting from its diversified economy and strong financial services sector, Bahrain has successfully forged its currency into a symbol of financial might and economic prowess.

  1. Omani Rial (OMR)

Claiming the third spot is the Omani Rial, exchanging at 1 OMR to 2.60 USD. Oman’s commitment to economic diversification and prudent monetary policies has bolstered the value of its currency, making it a formidable contender in the global financial arena.

  1. British Pound Sterling (GBP)

As the highest-value currency in India, the British Pound Sterling commands respect with an exchange rate of 1 GBP to 1.45 USD. Despite the challenges posed by Brexit, the UK’s stable economy and London’s status as a global financial hub continue to fortify the Pound’s position on the world stage.

  1. Euro (EUR)

With an exchange rate of 1 EUR to 1.22 USD, the Euro remains a dominant force in the global currency market. Representing 19 European Union member countries, the Eurozone’s economic strength and stability contribute to the currency’s widespread use and appeal.

  1. Swiss Franc (CHF)

Known for its safe-haven status, the Swiss Franc boasts an exchange rate of 1 CHF to 1.10 USD. Switzerland’s reputation for financial stability, a robust banking system, and a strong economy make the Franc a popular choice for investors during uncertain times.

  1. US Dollar (USD)

As the world’s primary reserve currency, the US Dollar stands strong with an exchange rate of 1 USD to 1 USD (parity). Despite facing challenges from other rising currencies, the United States’ economic prowess and global influence keep the Dollar in a prominent position.

  1. Jordanian Dinar (JOD)

The Jordanian Dinar secures its place on the list with an exchange rate of 1 JOD to 1.41 USD. Jordan’s strategic location and stable economy have contributed to the steady rise of its currency’s value.

  1. Cayman Islands Dollar (KYD)

Surprising many, the Cayman Islands Dollar boasts an exchange rate of 1 KYD to 1.25 USD, making it one of the strongest currencies in 2023. The Cayman Islands thriving financial services industry and favorable tax environment have fueled the currency’s growth.

  1. Gibraltar Pound (GIP)

Rounding off our list, the Gibraltar Pound exchanges at 1 GIP to 1.21 USD. Gibraltar’s status as a British Overseas Territory with a thriving offshore financial center has bolstered the value of its currency.

Conclusion

As the global economic landscape evolves, the strength and value of currencies play a pivotal role in shaping a nation’s financial power and global influence. The currencies listed above represent countries with stable economies, prudent fiscal policies, and diversified economic foundations. Whether they owe their strength to natural resources, financial services, or stable political environments, these currencies stand tall as the top 10 most powerful in the world in 2023, capturing the attention of investors, traders, and economic enthusiasts alike.

Experience seamless currency exchange services in Panipat with IBRLIVE. With competitive rates and hassle-free transactions, we ensure convenience and reliability for all your currency needs. Trust IBRLIVE for swift, secure, and efficient currency exchange services, making your transactions effortless and efficient.

Read This also: https://ibrlive.com/unveiling-the-best-dollar-to-rupee-live-rates-with-ibrlive-a-comprehensive-review/

Unveiling the Best Dollar to Rupee Live Rates with IBRLive: A Comprehensive Review

Unveiling the Best Dollar to Rupee Live Rates with IBRLive: A Comprehensive Review

by | Mar 12, 2024 | Blog

In today’s interconnected global economy, staying updated with live currency exchange rates is paramount, especially when dealing with the ever-fluctuating dynamics between the US dollar and the Indian rupee. For those seeking real-time insights into the dollar to rupee live exchange rate, IBRLive emerges as the ultimate solution, offering unparalleled accuracy and reliability without the dreaded 60-second delay commonly found elsewhere.

Dollar to Rupee Live Rates: Their Significance

For those involved in global trade, investments, and financial transactions, both individuals and businesses, the dollar to rupee live exchange rate is crucial. One of the most frequently traded currency pairs worldwide, changes in the USD/INR rate can have a significant impact on several different economic sectors.

  1. International Trade:

For businesses involved in importing and exporting goods and services between the United States and India, the dollar to rupee live exchange rate directly impacts the cost of transactions. A favorable exchange rate can enhance competitiveness in international markets, while unfavorable rates may lead to increased costs and reduced profitability.

  1. Investment Opportunities:

Investors and financial institutions closely monitor the dollar to rupee exchange rate to identify lucrative investment opportunities. A strengthening rupee relative to the dollar may attract foreign investment inflows into India, stimulating economic growth and capital formation. Conversely, a depreciating rupee may prompt investors to reconsider their investment strategies and asset allocation.

  1. Economic Indicators:

A vital sign of the general stability and well-being of the Indian economy is the exchange rate between the US dollar and the Indian rupee. To evaluate variables like inflation, trade balances, the efficacy of monetary policy, and external vulnerabilities, central banks, decision-makers, and market analysts examine changes in exchange rates. Variations in the USD/INR exchange rate can impact macroeconomic policies and forecasts.

IBRLive: Your Trusted Source for Real-Time Exchange Rates(dollar to rupees exchange rate live)

In the dynamic landscape of currency markets, having access to live exchange rates is essential for making informed decisions and managing currency-related risks effectively. IBRLive emerges as the preferred choice for individuals and businesses seeking reliable and accurate dollar to rupee live rates.

IBRLive sets itself apart by providing live currency exchange rates without any 60-second delay, ensuring users have access to the most current and accurate information at their fingertips. With IBRLive, you can make informed decisions swiftly, reacting promptly to market fluctuations and maximizing your financial outcomes.

With IBRLive users benefit from:

Instant Updates:

Stay updated with real-time exchange rate fluctuations, enabling timely decision-making and execution of currency transactions.

User-Friendly Interface:

IBRLive’s intuitive platform provides easy navigation and access to a wealth of currency-related information, empowering users to track exchange rates effortlessly.

Comprehensive Coverage:

IBRLive offers coverage of a wide range of currency pairs, including the dollar to rupee (USD/INR) pair, ensuring users have access to the latest exchange rate data for their currency needs.

Reliability and Accuracy:

IBRLive prides itself on delivering accurate and reliable exchange rate information, with no 60-second delay, allowing users to trust the data and insights provided.

Customizable Features:

IBRLive offers customizable features such as rate alerts, historical data analysis, and currency conversion tools, catering to the diverse needs of individual users and businesses.

 

 Introducing Fxpress Standard: Your Gateway to Live Interbank Exchange Rates(dollar to rupees exchange rate live)

 At the core of IBRLive’s offerings lies Fxpress Standard, a robust product designed to meet the diverse needs of individuals and businesses alike. Let’s delve into some of its key features:

Live Interbank Exchange Rates:

Fxpress Standard offers access to real-time interbank exchange rates, allowing users to track the dollar to rupee live rates with unparalleled precision.

Cash Tom Spot Rates:

Stay updated with cash Tom Spot rates, facilitating seamless transactions and reducing uncertainty in currency exchanges.

Monthly & Broken Date Forward Rates:

Plan and mitigate risks by accessing monthly and broken date forward rates, empowering you to make strategic financial decisions.

Currency Forecast:

Gain valuable insights into future currency trends with Fxpress Standard’s currency forecasting capabilities, enabling proactive decision-making.

Currency Calculator:

Calculate conversions effortlessly with IBRLive’s intuitive currency calculator, simplifying complex currency exchanges.

Historical Rates:

Access historical exchange rate data to analyze trends and effectively inform your future strategies.

Day Opening and Closing SMS:

Receive timely notifications regarding day opening and closing rates via SMS, ensuring you’re always in the loop.

Forward Contract Management Tool:

Manage forward contracts efficiently and mitigate currency risk with IBRLive’s comprehensive management tool.

Rate Alert (New):

Set personalized rate alerts and receive notifications when your desired exchange rate is reached, empowering you to seize favorable opportunities.

RPC & PCFC Management Tool:

Streamline RPC (Resident Foreign Currency) and PCFC (Pre-Shipment Credit in Foreign Currency) management with IBRLive’s dedicated tool, optimizing your financial operations.

One-Time FX Rate Negotiation with the Bank:

Simplify negotiations with banks by leveraging IBRLive’s one-time FX rate negotiation feature, ensuring favorable terms and conditions.

RPC & PCFC ROI Negotiations:

Maximize returns on RPC and PCFC investments through effective negotiations facilitated by IBRLive’s expertise and insights.

Full-Year Professional Consultancy:

Benefit from full-year professional consultancy services, guiding you through complex currency exchange scenarios and optimizing your financial strategies.

Conclusion

In conclusion, IBRLive stands as the epitome of reliability and accuracy in live currency exchange rates, offering users access to real-time information without the 60-second delay typically encountered elsewhere. With Fxpress Standard, users access a comprehensive suite of features designed to streamline currency exchange processes and optimize financial outcomes.

Whether you’re seeking to make timely currency conversions or a business looking to hedge against currency risks, IBRLive and Fxpress Standard provide the tools and insights necessary to navigate the complex world of currency exchange with confidence and precision. Choose IBRLive today and experience the difference firsthand.

 

How to Avoid Paying Takeover Charges When Switching Banks?

How to Avoid Paying Takeover Charges When Switching Banks?

by | Feb 22, 2024 | Blog

 

In the realm of corporate financial consultancy, one unfortunate trend persists within the Indian banking culture. When corporate clients decide to shift their credit facilities to another bank for better services and competitive pricing, their existing bankers often resort to threatening tactics by imposing heavy foreclosure charges, takeover charges and prepayment penalties. This practice poses a significant hurdle for clients seeking to switch to a new banking relationship. There is no such RBI notification on foreclosure charges for MSME customers, but the notification is for waiver of foreclosure charges for individual customers only.

However, IBRLive India Private Limited, a prominent player in the field, offers a solution to this predicament. By advocating for clients and writing to nodal offices and regulatory bodies such as the Reserve Bank of India (RBI), IBRLIVE helps waive off these charges, facilitating a seamless transition for clients while saving them substantial amounts of money.

Understanding the Banking Dilemma: The process of shifting credit facilities from one bank to another involves numerous complexities and efforts from both the customer and the prospective new bank. However, the existence of foreclosure charges imposed by the current banker often deters clients from making this transition. These charges, intended to dissuade clients from moving their accounts, create an unfavorable environment where customers feel trapped with their existing bank despite subpar services and non-competitive pricing.

Challenges Faced by Clients:

  1. Financial burden: Heavy foreclosure charges can be a significant burden on corporate clients, especially when they are already looking to switch banks due to financial constraints or unfavorable terms with their current bank.
  2. Lack of competitiveness: Staying with an underperforming bank often means enduring high interest rates, limited credit options, and inadequate customer service, preventing clients from optimizing their financial strategies.
  3. Opportunity cost: By sticking with an unproductive banking relationship, clients miss out on the potential benefits offered by other banks, such as lower interest rates, improved terms, and more favorable lending options.

IBRLIVE: Empowering a Smooth Transition: IBRLIVE India Private Limited, renowned for its expertise in corporate financial consultancy, steps in to alleviate the challenges faced by clients intending to switch banks. By employing their in-depth knowledge of banking regulations, industry practices, and the legal landscape, IBRLIVE assists clients in navigating the complexities of the transition process without incurring foreclosure charges.

Services Offered by IBRLIVE:

  1. Advocacy and representation: IBRLIVE acts as a representative on behalf of clients, advocating for their rights and interests. They engage with nodal offices and regulatory authorities, such as the RBI, to highlight the unethical practice of imposing heavy foreclosure charges and the adverse impact it has on clients and the banking sector as a whole.
  2. Expert consultation: IBRLIVE provides clients with personalized and comprehensive consultation services, guiding them through the intricacies of the transition process. Their team of experienced professionals ensures clients are well-informed about their options, rights, and legal safeguards.
  3. Negotiation and resolution: IBRLIVE initiates dialogue with clients’ existing bankers, emphasizing the unjust nature of foreclosure charges and seeking a resolution that benefits both parties. Through negotiation and strategic communication, they strive to secure waivers or reductions in these charges, ultimately enabling a seamless transition to the new banking relationship.

Benefits of Partnering with IBRLIVE:

  1. Financial savings: By successfully waiving off foreclosure charges, IBRLIVE helps clients save substantial amounts of money during the transition process. These savings can be directed towards business expansion, investments, or other areas that contribute to their overall growth and success.
  2. Enhanced competitiveness: IBRLIVE enables clients to break free from uncompetitive banking relationships, empowering them to explore more favorable terms, competitive pricing, and superior services offered by new banks. This fosters an environment conducive to their financial objectives and future endeavors.
  3. Streamlined transition: With IBRLIVE’s expertise and support, the transition to a new banking relationship becomes smooth and hassle-free. Clients can focus on their core business activities, confident that the complexities of the process are being efficiently handled by experienced professionals.

Conclusion: The banking culture in India often presents a significant hurdle for corporate clients looking to switch their credit facilities to new banks. The threat of heavy foreclosure charges imposed by existing bankers creates an environment where clients feel compelled to stay, even when confronted with inadequate services and non-competitive pricing. IBRLIVE India Private Limited, a corporate financial consultancy, aims to break this pattern by advocating for clients and facilitating a smooth transition process without incurring foreclosure charges. Through their expertise, negotiation skills, and representation, IBRLIVE empowers clients to explore better banking options, save money, and unlock their full financial potential.

Visit https://ibrlive.com or contact us if you are also under the dilemma of shifting to a new bank but afraid of the foreclosure threats by your existing bank.