What are the TCS provisions (including thresholds, if any) in regards to the overseas investment made by an investor?
From 1 October 2023, Authorised Dealers (typically banks and remittance companies) will collect 20% TCS for remittances made for international investments exceeding a threshold of INR 7 lakh.
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Is there any tax implication on transfer/remittance of funds on the platform for making investment in foreign securities?
Transfer of funds into an external platform would not result in any profit/gain as it involves only transfer of funds to self. Further no transaction has been undertaken / executed resulting in any transfer of any asset. However, w.e.f. 1st October ...
Can we claim credit for the 20% TCS?
Yes! The tax paid should not be confused as an additional cost or tax on the fund transfer. The TCS paid can be claimed as a credit against tax payable when filing income tax returns. If the TCS is higher than your tax payable, you will receive a ...
What insurance or protection do I get for my account?
US brokerage ecosystem recommends that ever investor account should have insurance. Stockal's brokerage partner, DriveWealth LLC, a member of the Securities Investor Protection Corporation (SIPC), will serve as the custodian for your securities ...
Can a Resident Indian utilize more than the amount specified (USD 2,50,000) under LRS for buying foreign listed securities?
An Individual cannot remit more than USD 2,50,000 in one financial year under LRS scheme. However, if a resident individual investor who is not permanently resident in India after having remitted their entire earnings and salary, wishes to further ...
What is the tax on dividend received from foreign listed securities?
A percentage of TDS applies only on the customer’s dividend earnings. This is when stocks in their portfolio give out dividends to their investors. US and India have a Double Taxation Avoidance Agreement (DTAA). This means that the customer pays tax ...