As per the Finance Act (2020), if an authorised dealer (bank) receives Rs.7 Lakh or more from resident individuals, then it has to collect 5% TCS from such individuals.  The TCS covers all remittances made under the Liberalised Remittance Scheme (LRS) of the Reserve Bank of India (RBI). 

This TCS can be adjusted against the final tax liability of the person. If you’re a salaried individual, you can get your monthly TCS reduced, or you may adjust the same against advance tax payment the next time. It is recommended to note that TCS provision will be applicable from 1 October  2020.