LRS: Govt proposes to reduce TCS rate to 2 pc for education, medical purposes
LRS: Govt proposes to reduce TCS rate to 2 pc for education, medical purposes
NEW DELHI: (Feb 1) Finance Minister Nirmala Sitharaman on Sunday proposed to reduce the tax collection at source (TCS) rate to 2 per cent for education and medical purposes under Liberalised Remittance Scheme (LRS) as well as on sale of overseas tour program package.
Presenting the Union Budget 2026-27 in the Lok Sabha, the Minister also proposed that TCS rate for sellers of specific goods -- alcoholic liquor, scrap and minerals -- will be rationalised to 2 per cent and that on tendu leaves will be reduced from 5 per cent to 2 per cent.
"I propose to reduce TCS rate for pursuing education and for medical purposes under the Liberalised Remittance Scheme (LRS) from 5 per cent to 2 per cent," she said.
