How to check details on why TCS got deducted?


I have enrolled for ESPP, so monthly some US stocks are purchased.
But I am sure that total purchases are still well under 7 lac. Still my employer deducted TCS. When asked, they responded like so …

"Please note that it is just not ESPP but also your personal usage is part of LRS. LRS you can check with your bank.

20% TCS will be deducted when an Individual’s ESPP contribution is remitted to CORP if total LRS usage at individual level surpasses Rs. 7,00,000. LRS usage at individuals’ level is derived by our AD banker from RBI’s data base.

We deduct TCS for each month’s contribution only in the following month from payroll. However, TCS is paid to government only when we remit the ESPP contribution to Corp the following quarter. Liability to pay TCS arises only when ESPP Contribution is remitted to Corp. However, we deduct it monthly only to ease the burden of deduction in one month for employees.

But I have not made any international purchases in current financial year.

Anyone any idea how can I get more details on what all amounts contributed to 7 lac limit?

Does using Amex credit card domestically also adds to the LRS limit?

Rattandeep Singh

Hey @rattanece

Yes, the amount spent using an Amex credit card domestically will be covered under LRS.

Further, here are the major components that are covered under the LRS limit:

  1. Private visits to the country
  2. Going abroad for employment
  3. Gifts or Donation
  4. Studies abroad, etc.

Hope this helps!

Thanks for your response.
I called Amex customer care, they told me my card is a domestic card, and all transactions are in INR. Will it still be covered under LRS?

Hello @rattanece

No, if your card is a domestic card and all transactions are in INR, then it will not be covered under LRS.

Hope this is helpful!