The bank does not charge any fees for its Foreign Currency Cash services. Only GST charges will be levied.
Goods and Services Tax: All foreign exchange transactions are subject to levy of Goods and Services Tax (GST), which is payable in addition to the charges mentioned above. Presently, the applicable rate of GST is as under:
1. On amount of commission, fees and charges (including Full Value charges) paid - @ 18% of amount of the commission/fees/charges.
2. On amount of foreign currency exchanged as per below slab:
|Amount of Currency Exchanged (ACE)||GST rates||Minimum GST||Maximum GST|
|Upto Rs. 1 lakh||0.18% of ACE||Rs. 45||Rs. 180|
|Between Rs. 1 lakh and up to Rs. 10 lakh||INR 180 + 0.09% of ACE||Rs. 180||Rs. 990|
|Above Rs. 10 lakh||INR 990 + 0.018% of ACE||Rs. 990||Rs. 10,800|
Tax Collected at Source: The Finance Act, 2020 has introduced new Income tax provisions on Foreign Exchange transactions under Liberalised Remittance Scheme (LRS), effective October 1, 2020.
As per the new provisions:
Tax Collected at Source (TCS) @ 5% shall be applicable on all forex drawls under LRS exceeding INR 7 Lakhs in a financial year.
TCS shall be applicable on all LRS transactions including forex drawl through FCY Cash Sell, Forex Cards issuance / load / reload, FCY DD issuance and Outward Remittances.
For transfers from Resident Individual Account to NRO Account towards Gift / Loan, TCS will not be applicable and the amount transferred will not be subsumed under the aggregate threshold limit of INR 7 Lakhs per financial year as mentioned above.
For remittances towards pursuing overseas education, TCS @ 0.5% shall be applicable, if the amount remitted is obtained through an educational loan from a financial institution as specified u/s 80E of the Income-tax Act, 1961.
If the amount remitted towards overseas education is out of own funds or loan from any other entity (i.e. not from education loan obtained from a financial institution explained above), TCS @ 5% shall be applicable on aggregate remittance exceeding INR 7 lakhs per FY.
Forex drawls towards Overseas tour packages shall attract TCS @ 5% of the total remitted amount and the amount remitted will be subsumed under the threshold limit of INR 7 Lakhs mentioned above.
The TCS rates mentioned above are to be increased by applicable surcharge as well as Health and Education Cess in case the remitter is not a resident as per the Income-Tax Act, 1961.
Income taxable in India
Rate of TCS
Health and education cess
Effective rate of TCS
Below Rs. 50 lakh
Rs. 50 lakh to Rs. 1 crore
Above Rs. 1 crore to Rs. 2 crore
Above Rs. 2 crore to Rs. 5 crore
Above Rs. 5 crore