Check out, How to send money abroad under LRS by Indian Residents, Types of Documents required, applicable Charges and TCS Provisions
Foreign Outward Remittance
Case – I: Retail Customers
Type 1: Indian Residents
Indian Residents can remit their money under the Liberalised Remittance Scheme (LRS) of RBI during the financial year (April-March) up to $2.5 Lakhs.
Basic Documents Required:
| Form A2 | Yes |
| Declaration under FEMA | Yes |
| Copy of Pan Card | Yes |
| Form 15CA/15CB | N.A. |
Types of Charges:
- Margin Matrix, % may vary on the basis amount of remittance.
- SWIFT Charges
- GST (Service Tax)
- TCS is to be collected by the Branch, on the basis of:
- Nature of Remittance
- Amount of Remittance
- Applicable TCS rate
Note: Foreign Outward Remittance charges are not applicable in case of remittance made by an individual.
Example: Mr. A, an Indian resident wants to send money to his Son abroad, amounting to $20,000. Assuming the conversion rate is Rs.80/USD. Therefore, amount of remittance in INR is 20,000 * 80 = Rs. 16,00,000/-
As per the above scenario, Mr. A needs to submit Form A-2 along with a Declaration under FEMA, and a copy of Pancard to the Bank.
Calculation of Charges
- Margin Matrix= $20,000 * 12% = Rs. 2,400/-
- SWIFT Charges = Rs. 500 + 18% GST = 590/-
- GST (Service Tax):
Up to Rs. 1 Lakhs * 1% = 1,000
More than Rs. 1 Lakhs – Rs. 10 Lakhs = 9,00,000 * 0.5% = 4500
Above Rs. 10 Lakhs = 6,00,000 * 0.1% = 600
Total = 1000 + 4500 + 600 = 6,100
GST = 6,100 * 18% = 1,098/-
TCS on Rs. 16,00,000 would be,
Rs. 16,00,000 – 7,00,000 = 9,00,000 * 20% = 1,80,000
You can claim the above TCS amount at the time of filing your Income-tax Return.
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