Overview
With rising economic power and overall growth in income levels, outbound remittances from India have been increasing despite the government’s decision to impose a whopping 20 per cent tax collected at source (TCS) last year.
“Seasonal factors, such as summer holidays and festival seasons, contributed to a surge in travel-related remittances from April onward,” Abhilasha Jaju, Director, BFSI vertical, 1Lattice, a tech-enabled decision support organisation, told The Secretariat.
“However, the 20 per cent TCS change could heavily influence remittance trends, especially for travel, gifting, and other discretionary spending,” Jaju said.