If I've already remitted ₹10 lakh abroad this financial year and then send another ₹2 lakh, is the 20% TCS added on top (so ₹2.4 lakh is debited and ₹2 lakh reaches the broker), or is it taken out of the ₹2 lakh? And who tracks the ₹10 lakh threshold across banks?
1 Answers
I have not hit that limit yet, but my understanding is that the TCS would be charged by bank on top of the remitted amount(like car dealers do while buying car)
Plus the TCS is only applicable on incremental amount, say after you cross 10L and send next 2L, bank will add 40k on top and deposit as TCS. Your account would be deducted 2.4 lakhs here.
It’s bank’s responsibility to check the threshold (across all banks and spend types) and charge TCS. They check with IT systems before sending payment.
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