As per the Union Budget 2020, under LRS, a 5 percent Tax Collection at Source (TCS) was to be applicable on remittances aggregating to Rs 7 lakh or more in a financial year.
TCS to apply from 1st October 2020 on foreign remittances
TCS shall be applicable on amount in excess of Rs 7 lakhs in a financial year and not on the total amount. For example, if the total foreign exchange facility availed under LRS in a financial year is Rs 10 lakh, i.e. you want to remit the amount abroad, a TCS at 5 per cent will be applicable on Rs 3 lakh. (Rs 10 lakh minus Rs 7 lakh) and tax collected will be Rs 15,000