Is a personal remittance made under LRS taxable?
Every Bank, when they receive a request for remittance out of India Under Liberalised Remittance Scheme of the Reserve Bank of India, while remitting such amount out of India shall collect a sum equal to 5% of such amount as income-tax.
The sum to be collected by an authorised dealer shall be equal to 5% of the amount or aggregate of the amounts remitted by the person in a financial year in excess of seven lakh rupees.
However, as against 5% referred above, the authorised dealer shall collect a sum equal to 0.5% of the amount or aggregate of the amounts remitted by the buyer in a financial year, if the said amount being remitted out is out of an education loan obtained from any financial institution for pursuing any education.
If the amount or aggregate of the amounts being remitted by the person is less than seven lakh rupees in a financial year, the above said tax collection at source shall not be applicable.
Further if the remittance is already subjected to deduction of tax at source under any other provision of this Act and such amount is deducted shall not be subjected to the tax as referred above.
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