As per the Budget proposal, banks remitting funds overseas will have to collect tax at source at 20% without the applicability of any threshold limit. So, whether you are buying a house in Dubai, or meeting the day-to-day expenses of your child studying abroad, or investing in global stocks, it will pinch your pocket. Earlier, in such cases, the remitting bank collected tax at source at 5% only if the amount or aggregate amount being remitted in a financial year exceeded Rs 7 lakh. Furthermore, the withholding tax applied only on the amount in excess of Rs 7 lakh (thus if Rs 10 lakh was being remitted, only Rs 3 lakh was subject to the tax collection norms). But these norms have now changed. The taxpayer can, of course, adjust the amount withheld as TCS against his tax liability, when filing the IT return. But the higher TCS dents the cash flow, as this adjustment happens only later. Refund, if any, arising out of the higher TCS follows later. However, when it comes to pure educational expenses — such as fees — the tax collection at source (TCS) norms remain unchanged. If the amount is being remitted out of an eligible loan, then the TCS remains at 0.5% of the amount in excess of Rs 7 lakh. If the remittance towards education expense is not from a loan, the TCS is 5% of the amount, which is in excess of Rs 7 lakh. TCS norms relating to remittances for medical treatment also remain unchanged.