TCS on Foreign Remittance
Find your Tax Collected at Source on money sent abroad under the Liberalised Remittance Scheme — live, by purpose, above the ₹7 lakh threshold.
How your TCS is calculated
Section 206C(1G)Claim your TCS back — ITR filed by a CA
TCS on remittance is fully adjustable against your tax or refundable. We make sure you get every rupee back.
Disclaimer: Indicative estimate for resident individuals remitting under the LRS. TCS rates per Section 206C(1G) as amended by the Finance Act 2023, effective for remittances from FY 2024-25. Actual TCS depends on your remittance purpose, PAN status and bank/authorised-dealer processing.
The ₹7 lakh LRS threshold
Under the RBI's Liberalised Remittance Scheme (LRS), a resident individual can remit up to USD 250,000 abroad every financial year. Since 1 October 2023, banks and authorised dealers collect TCS under Section 206C(1G) on these remittances — but only once your total LRS remittances cross ₹7,00,000 in the financial year. Below that, most purposes attract no TCS at all.
Purpose-wise TCS rates — Section 206C(1G)
The rate you pay depends entirely on why you are remitting. Education funded by a loan is the cheapest; general investments and gifts are the most expensive. Overseas tour packages are the only category taxed from the very first rupee.
| Purpose of remittance | Up to ₹7,00,000 | Above ₹7,00,000 |
|---|---|---|
| Education — funded by an education loan (Sec 80E) | Nil | 0.5% |
| Education (self-funded) or medical treatment | Nil | 5% |
| Overseas tour package | 5% | 20% |
| Other LRS purposes — investment, gifts, maintenance | Nil | 20% |
How to claim TCS credit in your ITR
TCS is not an extra tax — it is a prepayment of your income tax. Every rupee collected is credited to your PAN and can be adjusted against your tax liability or refunded if you have no tax to pay.
Check Form 26AS / AIS
The TCS collected by your bank appears against your PAN in Form 26AS and the Annual Information Statement (AIS). Confirm the amount matches the certificate your bank issues.
Claim it while filing ITR
Enter the TCS in the "Taxes Paid" → TCS schedule of your income tax return. It reduces your net tax payable, exactly like TDS or advance tax.
Get the balance as refund
If the TCS exceeds your total tax liability — common for students and one-off remitters — the surplus is refunded to your bank account after your return is processed.
Key terms explained
LRS — Liberalised Remittance Scheme
The RBI framework allowing resident individuals to remit up to USD 250,000 per financial year abroad for permitted purposes — education, travel, investment, gifts and more.
Section 206C(1G)
The Income Tax Act provision requiring authorised dealers to collect TCS on LRS remittances and overseas tour packages, deposited against the remitter's PAN.
The ₹7 lakh threshold
TCS applies only once aggregate LRS remittances cross ₹7,00,000 in the year (except tour packages). The threshold is per person, per financial year.
Adjustable, not lost
TCS is a credit against your income tax. You claim it back in your ITR — as a reduction in tax or a cash refund — so it never becomes a real cost.
When is TCS collected on a foreign remittance?
Under section 206C(1G), on remittances under the Liberalised Remittance Scheme once the total in a financial year exceeds ₹10 lakh, and on the sale of an overseas tour package. The threshold was raised from ₹7 lakh with effect from 1 April 2025.
What rates apply?
For LRS remittances other than education and medical treatment, 20% on the amount above the threshold. For education and medical treatment, 5% above the threshold. Overseas tour packages attract 5% up to ₹10 lakh and 20% above it.
Is a remittance funded by an education loan taxed?
No. TCS on a remittance for education funded by a loan from a specified financial institution was removed with effect from 1 April 2025, so no TCS is collected on it.
Can I get the TCS back?
Yes. TCS is not a tax on the remittance — it is a prepayment of your income tax. It appears in Form 26AS and is claimed as credit in your return, refunded to the extent it exceeds your liability.
Can salaried taxpayers adjust it against salary TDS?
Yes. An employee may furnish details of TCS collected to their employer, who then takes it into account while computing TDS on salary — avoiding the cash-flow cost of waiting for a refund.
Disclaimer: This tool gives indicative results for general guidance only and is not professional advice. Please verify with a qualified CA before acting on the numbers.