Lakshmi-Vilas-Bank Personal-NRI Premium-Banking

Dear Customer,

Thank you for banking with us. We value this special relationship.

With reference to the new Tax Deducted at Source (TDS) and Tax Collected at Source (TCS) related guidelines laid out in the Union Budget presented in February 2021, we would like to inform you that effective 01st July 2021, higher TDS/TCS will be applicable for individuals or ‘Specified Persons’ under Sections 206AB and 206CCA of the Income Tax Act 1961.

A ‘Specified Person’ is defined as someone:

  • Who has not filed their Income Tax returns for both the previous two assessment years (FY 2018-19 and FY 2019-20) and for which the time limit of filing returns under sub-section (1) of Section 139 has expired;
  • Whose aggregate of TDS and TCS is Rupees Fifty Thousand (INR 50,000) or more in each of these two previous years 

A Specified person shall not include a Non-Resident, who does not have a ‘permanent establishment’ in India (‘permanent establishment’ includes a fixed place of business through which the business of the enterprise is wholly or partly carried on).

The TDS/TCS rate that will apply to the above ‘Specified persons’ will be higher of the following:

  • twice the rate as per Income Tax laws; or
  • the rate of five percent (5%)

The impact of higher TCS would be also applicable on transactions falling under the Liberalized Remittance Scheme (LRS), including Remittances and International Debit Card transactions. (e.g. If the present TCS applicable is 5% on Travel related remittances/international card transactions, then 10% will be charged to the Specified Persons under the new provisions.)

We request you to kindly take note of the above, and ensure that you comply with the regulations to avoid applicability of higher TDS/TCS. Please refer to the Income Tax Act 1961, Sections 206AB Click here and 206CCA Click here for more details.

Do feel free to reach out to our branch staff if you need any assistance in reference to your account.

We assure you of our best services always.