{"id":5871,"date":"2023-03-10T12:16:53","date_gmt":"2023-03-10T06:46:53","guid":{"rendered":"https:\/\/appreciatewealth.com\/blog\/?p=5871"},"modified":"2025-06-27T18:34:43","modified_gmt":"2025-06-27T13:04:43","slug":"how-to-remit-up-to-1-million-to-the-us-at-5-tcs","status":"publish","type":"post","link":"https:\/\/appreciatewealth.com\/blog\/how-to-remit-up-to-1-million-to-the-us-at-5-tcs","title":{"rendered":"How to transfer up to $1 million to the US at 5% TCS?"},"content":{"rendered":"\n

An important component of smart investing is keeping track of changes in market trends and other micro- and macro-economic factors. By doing so, you can make the most of time-sensitive investing opportunities. And right now, you have one such opportunity available to you \u2014 you can transfer up to $1 million to the US at only 5% TCS (Tax Collected at Source). <\/p>\n\n\n\n

The TCS rate is increasing to 20%<\/strong> <\/strong><\/h2>\n\n\n\n

The Union Budget 2023 proposed that the TCS rate for overseas funds transfers be increased from the current 5%* to 20%, starting from October 1, 2023. It also proposed eliminating the minimum threshold limit of \u20b97 lakh, beyond which TCS was applicable. <\/p>\n\n\n\n

For instance, say you want to transfer \u20b915 lakh to the US to invest in tech stocks. If you do so before October 1, 2023, 5% TCS will be levied on \u20b98 lakh (\u20b915 lakh – the \u20b97 lakh threshold limit); this will amount to \u20b940,000. But if you transfer the same amount after October 1, 2023, 20% TCS will be levied on the entire sum of \u20b915 lakh, which will amount to \u20b93 lakh. <\/p>\n\n\n\n

This means that in the latter scenario, you will have to pay an additional \u20b92.6 lakh as TCS. And while you will be able to adjust the TCS paid against your tax liability when you file your annual returns, it will still tie up a significant sum of money. That sum could have been used more fruitfully: to make more investments, for instance. <\/p>\n\n\n\n

*For those who did not file their ITR in either of the previous two financial years or do not have a valid PAN, the TCS rate applicable is 10% instead of 5%.<\/em><\/p>\n\n\n\n

Avoid getting your funds locked up<\/strong><\/h2>\n\n\n\n

As of today, you do have a window of opportunity that can let you move your funds to the US at only 5% TCS. By taking advantage of this window, you can avoid having to lock up 15% of your transferred amount in the form of TCS. This means that you will be free to invest that sum (which can be quite substantial) in the securities of your choice, whether they be stocks, mutual funds, or real estate. In effect, you won\u2019t have to incur an opportunity cost due to 15% of your transferred amount being withheld by the tax authorities.<\/p>\n\n\n\n

A few golden months to transfer money at 5% <\/strong><\/h2>\n\n\n\n

Under the Liberalised Remittance Scheme (LRS), all Indian residents, including minors, can transfer up to $250,000 overseas in a financial year. So assuming you have four members in your immediate family, you can collectively transfer $1 million every financial year: $250,000 per family member. <\/p>\n\n\n\n

This means that you have the opportunity to transfer up to $1 million (your maximum transferable amount for FY 23-24) at only 5% TCS, provided that you do so by September 30, 2023.<\/p>\n\n\n\n

Two key reasons why you might want to transfer funds to the US are: paying for your children\u2019s education and investing in the US markets. But why should you invest your money in the US? Let\u2019s take a look. <\/p>\n\n\n\n

Park your money in US investments <\/strong><\/h2>\n\n\n\n

When Indian investors think of investing internationally, the first country they think of is probably the US, and for good reason. Investing in American markets can bring you several benefits, such as diversification, access to companies that are global leaders, and a depreciating rupee. <\/p>\n\n\n\n