A new tax makes it more expensive to move money out of India

  • The tax on outward remittances, increased from the earlier 5% to 20%, was proposed during the government’s presentation of its annual budget on Feb. 1. If India’s parliament passes the budget, the tax will come into effect on July 1.
  • The increased tax rate will apply to money sent overseas to spend on vacations and tour packages, investments, and gifts. But it exempts educational and medical expenses.