LRS outflows drop by 37.68% in October after higher tax levy

With banks implementing the government’s decision to levy higher Tax Collection at Source (TCS) rates on payments under the Liberalised Remittance Scheme (LRS) from October 1, remittances fell by 37.68 per cent to $2.176 billion during the month from $3.492 billion in September.
The higher TCS rates of up to 20 per cent are applicable on various international spends such as overseas tour packages which include travel related to medical treatment, business, education, pilgrimage, personal gifts and donations, family maintenance and investments. Remittances were $3.379 billion in August, $2.359 in July and $3.890 billion in June, Reserve Bank of India data shows.
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