LRS — TCS on foreign remittance
The Liberalised Remittance Scheme lets resident individuals remit up to USD 250,000 per financial year. Banks collect TCS at source per s.206C(1G); it's an advance tax credit, not an extra cost.
Result
TCS collected by bank: ₹0
Other LRS purposes: 20% TCS on the amount above ₹10,00,000 threshold.
This is a reclaimable credit, not a cost. The TCS appears in your Form 26AS and offsets your final income-tax liability (or is refunded if you have no liability).
How we calculate this
Source: Income Tax Department — 2026-27 bracket schedule.
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| Band | Rate |
|---|
- Loan-funded education remittances: NIL TCS.
- Self-funded education and medical: 5% above ₹10,00,000.
- Overseas tour packages: 5% up to ₹10,00,000, then 20% on the excess. No exemption below the threshold.
- Other LRS purposes: 20% above ₹10,00,000.
- TCS is credited against final tax liability, not an additional levy.
NOT financial advice - seek advice from a professional for your specific situation
Read the matching guide: LRS & foreign-remittance TCS →
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