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!

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So, what are the ways to get details on LRS? Like is there any portal where I can check transactions and TCS on those?

I am suspecting, apart from ESPP, the on-hire stocks I got from employer is also counted for TCS.

Hey @rattanece

If TCS has been collected on your income, you can verify it by checking the Annual Information Statement (AIS) or Form 26AS, which can be downloaded from the Income Tax Department portal.

Hope this helps!

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Hi, Please let us know if you could find what contributed to TCS ?

To obtain more details on the amounts contributing to the Rs. 7,00,000 limit under the Liberalized Remittance Scheme (LRS), you can contact your bank for a statement of your LRS transactions. This statement should include all international transactions made using your bank account or credit card, which may help you track your LRS usage and identify any contributions towards the limit.

Regarding the inclusion of domestic transactions, such as using an Amex credit card, in the LRS limit, it’s advisable to consult with your bank or a financial advisor for clarification. Domestic transactions typically do not count towards the LRS limit, as the scheme primarily regulates international transactions. However, it’s essential to confirm this with your bank to ensure accurate understanding and compliance with the regulations.

If you have concerns about the TCS deduction despite not exceeding the LRS limit, you may also consider seeking assistance from a tax advisor or contacting the relevant tax authorities for clarification and resolution. They can provide guidance on the specific regulations and help address any discrepancies in the TCS deduction process.

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