DCB Remit is an online facility which enables you to send money abroad to a foreign bank account. All you have to do is register on www.dcbremit.com and submit simple verification then transfer money to your registered beneficiary from the comfort of your home, office or a mobile phone without having to visit a bank branch.
That is right...no visit to your bank or DCB Bank branch!
You can transfer funds from your own savings bank account held with any other bank in India through electronic fund transfer i.e. NEFT/IMPS or RTGS to the DCB Bank account or you can use UPI payment option on DCB Remit website to send money to DCB Bank.
For NEFT/IMPS or RTGS, you will need to give the instructions to your bank through their net banking access.
Currently, DCB Remit accepts payments sent through IMPS, RTGS, NEFT and UPI. You can send money to DCB Bank from your bank's mobile app, internet banking or branch. Please add DCB Bank as a beneficiary in your existing resident Indian account with any bank in India. Follow the usual 'Add Beneficiary' steps of your bank. Here are the account details for DCB Bank:
Account number - 90020900000143
IFSC - DCBL0000001
Branch - Mumbai Branch
Please note that after addition of beneficiary in your bank may restrict the transaction amount for a few hours to 24 hours.
You can transfer money via UPI payment option available on the DCB Remit website for instant money transfers.
As stipulated by the Government of India, any conversion from one currency to another - sale, encashment & remittance will be charged GST on the gross amount of currency exchanged as per the following slabs:
1% of the gross amount of currency exchanged for amount up to INR 100,000 subject to the minimum amount of INR 250 i.e. minimum GST payable is INR 45
INR 1000 plus 0.5% of the gross amount of currency exchanged for an amount of rupees exceeding INR 100,000 and upto INR 10,00,000 and
INR 5,500 plus 0.1% of the gross amount of currency exchanged for amount of rupees exceeding INR 10, 00,000, subject to maximum amount of INR 60,000 which caps GST Payable at Rs. 10,800
When payments are made locally and overseas, charges are imposed by various bank's, such as the remitting bank, the beneficiary bank, the intermediary bank etc. These charges can be settled in one of the following ways:
BEN: Charges borne by the beneficiary:
The beneficiary bears all charges of the bank's engaged in the transfer of the payment. You only pay the remittance amount. All charges - AFO's, intermediary banks and beneficiary banks charges will be deducted from the remittance amount and the beneficiary will receive the remaining balance.
OUR: Charges borne by remitter:
You bear all charges of the payment which includes the remittance amount, DCB Bank's charges as well as the other banks fees (Correspondent bank, intermediary bank, beneficiary bank etc.) so the beneficiary receives the complete payment. DCB Bank will levy the charges up-front at the time of requesting the transaction.
The Liberalised Remittance Scheme (LRS) of the Reserve Bank of India (RBI) allows resident individuals to remit a certain amount of money during a financial year to another country for investment, expenditure and other permissible reasons. According to the prevailing regulations, resident Indian individuals may remit up to $250,000 per financial year.
The Finance Act, 2020 amended Section 206C of the Income Tax Act,1961 (the and introduced tax collection at source (TCS) on foreign remittance under LRS subject to the applicable threshold limit.
TCS at the rate of 5% shall be collected on foreign remittance under LRS exceeding INR 7 Lakh during the financial year. TCS at the rate of 0.50% shall be collected on foreign remittance under LRS if the amount is being remitted out of a loan obtained from any financial institution as defined under section 80E of the Act. The said amended income tax provisions shall be applicable from 1st October 2020.
An authorised dealer (DCB Bank Ltd.) receiving an amount or an aggregate of amount of INRs 7 Lakh or more in a financial year for remittance out of India under the LRS of RBI shall be liable to collect TCS, if the Bank receives a sum in excess of said amount from a customer being a person remitting such amount out of India.
TCS shall be applicable on all foreign remittance transactions that fall under Liberalized Remittances Scheme (LRS).
Remittances under LRS below ₹ 7 lakh are not subject to TCS. Similarly, foreign remittance under LRS if the amount is being remitted out of a loan obtained from any financial institution as defined under section 80E of the Act, TCS will be collected @ 0.5% instead of @ 5%.
| This example demonstrates how TCS is applicable for foreign remittances | Customer | Foreign remittance under LRS till 30 Sept 2020 (INR) | Foreign remittance on 1 Oct 2020 (INR) | TCS Applicable Y/N | TCS applicable amount (INR) | TCS Rate % | TCS amount (INR) |
|---|---|---|---|---|---|---|---|
| 1 | A | 5,00,000 | 2,00,000 | N | - | - | - |
| 2 | B | 6,00,000 | 2,00,000 | Y | 1,00,000 | 5% | 5000 |
| 3 | C | 8,00,000 | 2,00,000 | Y | 3,00,000 | 5% | 15,000 |
| 4 | D | 8,00,000 | 2,00,000 | Y | 3,00,000 | 0.5% | 1500 |
* Fund for remittance utilised from a loan obtained from a financial institution as defined under section 80E of the Income Tax Act for the purpose of pursuing education.
Yes, the remitter may claim credit for TCS amount by filing the relevant section in the income tax return subject to applicable income tax provisions.
No GST will be applicable on the TCS. However, GST will be applicable on the currency conversion, remittances charges or any other charges as applicable.
Section 206CCA of the Income Tax Act, 1961 (the "Act") provides Collection of Tax at Source (TCS) from the customer/buyer /remitter at higher rates in the event of specific transactions (including outward remittance under LRS), if the customer/ buyer/ remitter is a specified person (i.e. non-filer of Income Tax Returns) as defined u/s 206CCA of the Act.
Section 206CCA is applicable from 1st July 2021.
The higher rate of TCS shall be also collected for transactions under LRS that exceed the threshold of INR 7 Lakh in a Financial Year and the customer/ remitter/ buyer is a non-filer of Income Tax Returns as defined u/s 206CCA of the Act. Higher TCS rates are also applicable for some other transactions as prescribed under the Income Tax provisions.
The TCS is required to be collected at higher rates than prescribed in the Act, if the person has not filed Income Tax returns for two Assessment Years relevant to the two previous years immediately prior to the previous year in which tax is required to be collected, for which the time limit of filing of Income Tax Return under section 139(1) has expired: and Going back to Point 6 'Example 1' in this FAQ document, the aggregate of TDS and TCS in this case is INR 50,000 or more in each of the two previous years.
If the buyer/ remitter/ customer fulfils the conditions in Point 12, then TCS shall be collected at higher of the following two rates :
a) at twice the rate specified in the relevant provision of the Act or
b) at the rate of 5%
Higher rates of TCS 10% instead of 5% will be applicable in the case of any LRS transactions (Foreign Remittance, International Debit Card, and International Pre-Paid Cards).
Example 2: A person has done LRS remittance in FY 2021-22 amounting to INR 4 Lakh. Additionally he used a Debit Card abroad for an international transaction of INR 5 Lakh on 5th July, 2021 and the same day he also used his Pre-Paid Card for another international transaction of INR 2 Lakh. The customer is a non-filer of IT returns as specified u/s 206CCA of the Act.
Calculation of TCS :
Remittance Transaction : INR 4 Lakh
Debit Card and Pre-Paid Card transaction : INR 7 Lakh (INR 5 Lakh + INR 2 Lakh)
Total Amount : INR 11 Lakh
TCS will be applied on INR 11 Lakh minus INR 7 Lakh (Threshold, no TCS will be deducted for international LRS transactions up to INR 7 Lakh in a Financial Year).TCS = INR 4 Lakh @ 10% (twice the existing rate) INR 40,000.00
Permanent Account Number (PAN) of the customer will be checked/ verified from the official India Income Tax website for the applicability of TCS rates. If the customer is a non-filer of Income Tax Return as per the Income Tax website, then a higher rate of TCS shall apply as per section 206CCA of the Act.
Contact
Video
