So I suggested a way around that he may tell his father to transfer money in his NRO account and he can then transfer it to NRE and repatriate the money. Now TCS, like TDS is something which again many would like to avoid, as they are not sure when they will get the refund, moreover would like to avoid the operational hassles. This TCS is applicable on the amount over and above Rs 7 lakh. You may claim the refund by filing ITR if you don’t have taxable income in India. This way the government just wants to ensure tax compliance and keep track of foreign remittances.

LRS is where Indian residents can remit up to USD 250,000 every year for various purposes such as medical treatment, gifts, maintenance of relatives abroad, foreign education, and investment in real estate, stocks, and bonds. The Indian Government last year announced TCS on all foreign remittances under the Liberalised Remittance Scheme (LRS).

Rahul, called me to confirm the same and I clarified that TCS does not make the transaction taxable. Even if you do not have any income, you may be scared of this. The 3 letter word always creates fear in the mind of people. It was news to Rahul, and he was shocked to hear that how come transactions between Father-Son be taxable. His father told him that the money to be transferred would be taxable and the bank will deduct some TCS (Tax collected at source) from it. Rahul Mishra, an IT professional in the USA, requested his father to send him some money to help him buy a house.

Form 15ca and 15cb download