What is GST and TCS?
Goods and Service Tax (GST) is applicable on all payments and is based on the amount of funds being sent.
Tax Collected at Source (TCS) is applicable for all FX payments after you have crossed a threshold of INR 7 lakhs for the financial year.
When will I receive the TCS certificate?
A TCS certificate is typically not required to be sent from EbixCash as this is available online in your 26AS Tax Credit Statement. Follow the steps on Income Tax India's website to locate your AS26.
How much time does it take for TCS to reflect in 26AS?
It takes 3-4 months for the TCS to reflect on your 26AS tax form.
How is the 7 Lakh limit of TCS tracked?
The 7 lakh limit of TCS is tracked based on your declaration. For example, in the scenario you have declared that previous to the current payment you have done INR 10 lac for an FX payment (remittance, foreign currency for holiday, forex card, etc. against a particular PAN number) in the current financial year, then the TCS applicable will be calculated on 10 lacs + the current transaction value - INR 7 lakhs.
Where can I learn more about Indian taxes on cross-border transfers to students?
For additional tax questions, please check our webinar with tax experts.
To visit our Student Expenses platform and get the process started, please click here.