The finance ministry has clarified the threshold of Rs 7 lakh for the liberalised remittance scheme is the combined level for calculating tax collected at source (TCS), irrespective of the purpose of remittance. The ministry’s FAQs provided clarification on various aspects of the scheme. It stated that overseas medical expenses would include spending on tickets, medical costs, and day-to-day expenses. Remittance for education would cover travel costs, tuition fees, and other day-to-day expenses for studies. The FAQs also specified that ‘overseas tour packages’ would cover travel expenses, hotels, boarding and lodging, and similar expenditures. Notably, the FAQs did not address some issues raised by banks regarding their systems’ ability to handle the proposed tax changes. Following criticism, the government deferred the implementation of higher TCS and made adjustments to the policy. The government also announced the development of a real-time update system for remittance under the Liberalised Remittance Scheme (LRS). Additionally, the FAQs clarified the TCS thresholds for the first and second halves of the current financial year. The Rs 7 lakh limit applies for the entire year, so if it is exhausted before October 1, all subsequent remittances will attract TCS. Furthermore, the purchase of overseas tour programs classified under LRS will face TCS, but not other provisions for remittance. These changes were announced by Finance Minister Nirmala Sitharaman in the previous budget.