Post login to DBS Bank application, you will be required to add new overseas payee before initiating an overseas payment. Please keep required details handy like payee full name, account no., bank details etc. to add overseas payee.
Please ensure that you have downloaded and logged into digibank app at least once before adding a new overseas payee.
Once the payee is set up, your newly added payee will be saved so that you don’t need to enter them all over again in your next transfer.
Amount of Currency Exchanged (ACE)
|Upto Rs. 1 lakh
|0.18% of ACE
|Between Rs. 1 lakh and up to Rs. 10 lakh
|INR 180 +
0.09% of ACE
|Above Rs. 10 lakh
|INR 990 +
0.018% of ACE
Tax Collected at Source (TCS) is an income tax collected in India on some transactions given in the Section 206C of the Income Tax Act 1961.
From 1st October 2020, Banks, being an Authorised Dealer (‘AD’), are required to collect TCS on certain remittances made under the Liberalised Remittance Scheme.
The Union Budget 2020 has mentioned that "As authorized dealers, Banks are required to collect tax at source (TCS) @5% u/s 206C on foreign remittances exceeding ₹7 lakh under Liberalized Remittance Scheme (LRS) of RBI."
The tax collection at source will be effective Oct 1, 2020 on all LRS transactions including international debit card transactions.
Below transactions are under the purview of TCS applicability -
We would like to inform you that a recent announcement has clarified the below on TCS:
Below is the TCS charging grid for remittances and transactions under LRS –
LRS Purpose/Type of transaction
Applicable Tax (TCS)
A. Business travel
B. Travel for pilgrimage
C. Travel for medical treatment
D. Travel for education (including fees, hostel expenses etc.
E.Other travel (including holiday trips and payments for settling international credit cards transactions)
2. Debit Card
A. International transactions on Debit Cards (including transactions done on Foreign Merchants)
5% of the transaction / remittance amount from INR 1
LRS Purpose - Studies abroad, where the source of funds is Education loan
0.5% of the remittance amount above INR 7 lacs during the financial year.
Other LRS purposes
5% of the remittance amount, above INR 7 lacs during the financial year.
Important note - Please ensure the account is sufficiently funded to cover the remittance amount, TCS amount, remittance charges, correspondent bank charges and other taxes/charges as applicable. In case of insufficient balances, transactions will not be processed.
Sharing a few illustrations for your reference :
If the purpose of transfer is under LRS (Loan to NRI or Gift to NRI), TCS will be applicable on transfers from domestic account to NRO account.
TCS paid can be adjusted against tax payable when individuals who would have paid TCS file income tax returns (ITR) in India. Please consult your tax advisor/consultant for further information.
TCS is applicable on all LRS transactions. LRS permits Rupee loan and gift to a NRI/PIO who is a close relative. In this case, for such rupee transactions, TCS will be applicable.
TCS is applicable at PAN level. The LRS limit maintenance, TCS charging and TCS reporting is consolidated at customer level i.e. at PAN level.
Please note TCS once deducted cannot be refunded by the bank in case of any return of transaction/remittances. Remitter can approach for refund from tax authority while filing Income Tax Returns or consult with tax advisor for refund/adjustment.
Overseas tour program package is “any tour package which offers visit to a place outside India and includes expenses for travel or hotel stay or boarding or lodging or similar expenses”
Thus, even the expenses for travel such as ticketing, hotel stay, or boarding or lodging etc. are included in the overseas tour package.
Yes there are following exceptions when TCS need not be collected:
TCS is to be collected at the time of debiting the amount payable by the remitter or at the time of receipt of such amount from the remitter, by any mode, whichever is earlier.
For remittances up to USD 25,000/day, you may explore and avail instant transfers from the comfort of your home by using DBS Bank https://www.dbs.com/digibank/in/banking/remittance/international-money-transfers.
Customers can call their Relationship Managers for Remittances above USD 25,000 upto USD 2,50,000 in a financial Year.
Dynamic currency conversion or cardholder preferred currency is a process whereby the amount of a Visa transaction is converted by a merchant or ATM to the currency of the payment card's country of issue at the point of sale.