ITR
Foreign travel or remittance flagged in AIS
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Facts
Banks report foreign remittances and sale of foreign currency, and TCS collected on them appears in your tax statement. The department checks that the money came from known sources.
Provisions and law
- Sec 285BA, Income-tax Act 1961Banks, registrars, mutual funds and others report specified high-value transactions to the department.
- Sec 206C(1G), Income-tax Act 1961 (now Sec 394, Income-tax Act 2025)Tax is collected at source on remittances under the LRS and overseas tour packages.
Analysis
Education or travel remittances are not income, but they need a funding source. Show it came from salary savings, an education loan or a family gift. Claim the TCS shown in Form 26AS as a credit in your return, which many people forget. If you have foreign assets as a resident, also check Schedule FA.
Conclusion
- Collect remittance advices and A2 forms from the bank.
- Show the source of funds for each remittance.
- Check that TCS was claimed in your return.
- Respond on the Compliance Portal.
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