Impact of increase in TCS on direct international investing

  • International investing has become highly popular in recent times to get exposure to foreign markets, especially US markets with many platforms offering direct investing is US.

  • In budget yesterday, TCS was increased to 20% from 5% and also removed threshold limit.

  • It is very likely that Government’s decision to increase TCS on money sent out using LRS outside India may have a big impact on direct investment in Foreign markets.

  • Do note that this does not affect mutual funds or ETFs investing in internationally as they don’t come under LRS.

This tweet by @nithin explains the following topic in detail.

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