TDS will be deducted on sending money abroad, know what are the rules

- Advertisement -

Now sending more than seven lakh rupees abroad, the government will deduct 5% TDS (tax cut at source). However, it can be counted in the total income while filing the return. This provision has been made in the Finance Bill 2020-21. This will hurt the people who have sent their children to study abroad by taking loans. They will also have to pay tax on bank loans.

The government says that people are misusing the scheme to send generous funds, under which it is allowed to send up to two and a half million dollars abroad. The Income Tax Department investigated 5026 cases of remittances abroad. It was found that 1807 of these people were those who did not file income tax returns.

The government wants such people to be taxed. If they send money without a PAN number, then 10% TDS will be deducted. This amount will be forfeited if they do not file returns.

Similarly, those going abroad for treatment will also have to pay five percent tax. The bank or agency from which the money is being sent will deduct this amount at the time of sending. Similarly, tour packages for traveling abroad will also attract 5-10% tax. 

- Advertisement -