Transfer your child's living expense before new TCS rates kick in

Higher TCS is temporary; you can adjust it against your tax liability or get refund

Currently, tax collection at source (TCS) is levied at the rate of 5 per cent on remittances above Rs 7 lakh under the liberalised remittance scheme (LRS). Union Budget 2023 has proposed to hike the TCS rate from 5 per cent to 20 per cent on all foreign remittances except those meant for education and health care.

Pallav Pradyumn Narang, partner, CNK says, “The Rs 7 lakh threshold has been removed for all purposes other than education (loan funded or own) and medical.”  Money remitted abroad for the purpose of medical treatment and education (other than that funded by an education