If you also have SBI (SBI) You need to know this if you are a customer. SBI has alerted the customers about the changed rules from October 1 (SBI Banking Rules). If left unmanaged, they can be left astray and lose the right path. The bank has informed the customers by tweeting that from October 1, customers will have to pay tax for transactions abroad. That means customers will have to pay more for sending money abroad. Let it be known that the central government has changed the rules for sending money abroad.
— State Bank of India (@TheOfficialSBI) September 22, 2020
There will be a tax on the transaction
According to the new rules of the central government, the government will now tax the people on sending foreign funds, which means that children who are studying abroad and you send money from here for their expenses, you will now have to pay tax on this amount. The government has changed the rules for levying tax on more than Rs 7 lakh. This rule will come into force from October 1.
Changes in the Finance Act 2020
It may be mentioned that the Central Government has amended the Finance Act 2020. Reserve Bank of IndiaUnder the Liberalized Remittance Scheme, you will now have to pay TCS on remittances abroad. Now the tax has to be paid. People will have to pay most of the 5 per cent tax collected at source. Under LRS you can send 2.5 2.5 million annually.