LRS

Before this, the highest spend on overseas travel in an entire financial year was $7 billion in 2019-20

In FY22, outflows under the LRS scheme at $19.61 billion was an all-time high

The TCS, is not in itself, a tax and credit for the amount paid on any transaction is available to the person to adjust against their tax liability for the year

TCS on remittances made under the LRS was introduced in 2020

On Jan 23, RBI had asked the lender to immediately stop transactions under LRS, following certain material supervisory concerns observed in the bank

International travel continued to over 50 per cent of the entire outward remittance by Indians under the scheme

Apart from investing in housing, Indians are also applying for 'jumbo life and term' insurance covers worth $20 million

According to RBI data, in August, Indians remitted $467.52 million for overseas education, $330.70 million for maintenance of close relatives, and $221.31 million in gifts.

According to the new rules of the liberalised remittance system (LRS), an Indian resident can now invest $250,000 a year in foreign stocks, debt etc

Spend on international travel accounts for 48% of total remittance

Travel, relative care top the chart, with the former coming back to pre-Covid levels

Those with small amounts should skip it owing to high costs and elaborate tax-related compliances

Take into account transaction fee, conversion fee, and exchange-rate mark-up when comparing players' costs

The TCS is imposed on all LRS transactions above Rs 7 lakh including travel overseas

Most of the assessees in question are either traders or professionals; there are also those who sent money abroad for donation purposes

Altered rules aim at checking black money transactions and misuse of guidelines for commercial purposes