Increase in TCS under LRS is to target discretionary spending: Revenue Secy

TCS on remittances made under the LRS was introduced in 2020

The decision to increase the tax collection at source (TCS) rate for foreign remittances under the Liberalised Remittance Scheme (LRS) is to target the discretionary spending, arising out of taxable income and not the savings, Revenue Secretary Sanjay Malhotra said on Friday.
 
“Our sense of LRS is that the expenses of students or relatives is certainly not going out of savings, such as fixed deposits, and medical and education has already been kept out. These are discretionary spending coming out of taxable income and not from saving. The honest people are not losing anything,” he said at a post-Budget