TCS Calculator India — FY 2025-26

Q: What is TCS and how is it different from TDS?

TCS (Tax Collected at Source) is collected by the seller from the buyer at the time of sale or service. TDS (Tax Deducted at Source) is deducted by the payer before making a payment. For example, when you remit money abroad, the bank collects TCS from you. When your employer pays salary, they deduct TDS. Both are advance tax mechanisms — adjustable against your final tax liability when filing ITR.

Q: Is TCS an additional tax I have to pay?

No. TCS is NOT an additional tax. It is an advance collection of tax that is fully adjustable against your income tax liability. When you file your ITR, the TCS amount appears in Form 26AS/AIS. You claim it as tax already paid. If TCS collected exceeds your actual tax liability, the excess is refunded by the Income Tax Department.

Q: What is the TCS threshold for LRS remittances in FY 2025-26?

The TCS threshold for LRS remittances is ₹10,00,000 per financial year, effective from 1 April 2025. This was raised from ₹7,00,000 by Union Budget 2025. The threshold is cumulative across all your LRS remittances in a FY. Exception: overseas tour packages attract TCS from the first rupee at 5% up to ₹10L and 20% above.

Calculate Tax Collected at Source on foreign remittance (LRS), motor vehicle purchase, and study abroad education. See exact TCS by purpose, compare loan vs self-funded education TCS, and understand how to claim refund via ITR. Updated for Budget 2025 rates with ₹10L threshold.

Calculate TCS on your foreign remittance under LRS

Total remittance amount

₹

Total amount being remitted abroad in this FY (cumulative)

Purpose of remittance

TCS rate depends on the purpose of remittance

PAN available

Yes

Without PAN, TCS rates are doubled (5% becomes 10%, 20% becomes 40%)

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How to Use This Calculator

LRS Foreign Remittance tab

Enter your total remittance amount (cumulative for FY 2025-26) and select the purpose of remittance. The calculator shows the TCS amount, effective rate, and total outflow. Toggle PAN availability under "More options" to see the impact of higher TCS rates without PAN.

TCS on Car Purchase tab

Enter the vehicle price (ex-showroom including dealer accessories). The calculator shows whether TCS applies (vehicles above &rupee;10 lakh), the TCS amount at 1%, and the total payment at the dealer.

Study Abroad TCS tab

Enter the total education remittance amount. The calculator compares TCS under two scenarios — education funded via a loan (Section 80E, 0% TCS) vs self-funded (5% above &rupee;10L). See exactly how much TCS you save by using an education loan.

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TCS Rates & Rules

Tax Collected at Source (TCS) under Section 206C of the Income Tax Act, applicable for FY 2025-26:

TCS on LRS (Foreign Remittance) — effective 1 April 2025:

Education via specified loan (Section 80E): 0% TCS (no limit)
Education (self-funded) / Medical: 0% up to &rupee;10L, 5% above &rupee;10L
Overseas tour packages: 5% up to &rupee;10L, 20% above &rupee;10L
All other (investments, gifts, property): 0% up to &rupee;10L, 20% above &rupee;10L

Without PAN: 5% rate → 10%, 20% rate → 40%

Threshold: &rupee;10,00,000 cumulative per FY (raised from &rupee;7L by Budget 2025)
LRS annual limit: USD 250,000 per individual

TCS on Motor Vehicle:
1% on vehicles with sale price above &rupee;10,00,000

Key: TCS is adjustable against income tax liability via ITR. It is NOT an additional tax.

TCS is collected by the authorized dealer (bank for LRS, car dealer for vehicles) and deposited with the government. The buyer/remitter can claim credit for TCS when filing their Income Tax Return. If TCS exceeds tax liability, the excess is refunded.

Example

Rahul — Pune IT professional, sending &rupee;15,00,000 for overseas investment

Rahul is 35, works at a tech company in Pune, and wants to invest in US stocks via LRS. He plans to remit &rupee;15,00,000 in FY 2025-26. He has PAN.

Step 1: Determine the applicable TCS rate

Total remittance&rupee;15,00,000

PurposeOverseas investment

FY 2025-26 threshold&rupee;10,00,000

Rate below threshold0% (exempt)

Rate above threshold20%

Step 2: Calculate TCS

Amount within &rupee;10L&rupee;10,00,000 (0% TCS)

Amount above &rupee;10L&rupee;5,00,000

TCS on &rupee;5,00,000 at 20%&rupee;1,00,000

Step 3: Total outflow

Remittance amount&rupee;15,00,000

TCS collected by bank&rupee;1,00,000

Total outflow&rupee;16,00,000

Effective TCS rate6.67%

Rahul pays &rupee;1,00,000 TCS on his &rupee;15L remittance. This is not an additional tax — he will claim this as credit when filing his ITR. If his total income tax liability is lower than &rupee;1,00,000, the excess TCS is refunded.

Meera — buying a car for &rupee;12,00,000

Vehicle price&rupee;12,00,000

TCS rate1% (price > &rupee;10L)

TCS amount&rupee;12,000

Total payment at dealer&rupee;12,12,000

The dealer collects &rupee;12,000 as TCS and issues Form 27D. Meera claims this credit in her ITR.

FAQ

What is TCS and how is it different from TDS? ▼

TCS (Tax Collected at Source) is collected by the seller from the buyer at the time of sale or service. TDS (Tax Deducted at Source) is deducted by the payer before making a payment. For example, when you remit money abroad, the bank collects TCS from you. When your employer pays salary, they deduct TDS. Both are advance tax mechanisms — adjustable against your final tax liability when filing ITR.

Is TCS an additional tax I have to pay? ▼

No. TCS is NOT an additional tax. It is an advance collection of tax that is fully adjustable against your income tax liability. When you file your ITR, the TCS amount appears in Form 26AS/AIS. You claim it as tax already paid. If TCS collected exceeds your actual tax liability, the excess is refunded by the Income Tax Department, typically within 30-45 days of ITR processing.

What is the TCS threshold for LRS remittances in FY 2025-26? ▼

The TCS threshold for LRS remittances is &rupee;10,00,000 per financial year, effective from 1 April 2025. This was raised from &rupee;7,00,000 by Union Budget 2025. The threshold is cumulative — it applies across all your LRS remittances in a FY, not per transaction. Exception: overseas tour packages attract TCS from the first rupee (no threshold exemption) at 5% up to &rupee;10L and 20% above.

How do I claim TCS refund? ▼

To claim TCS refund: (1) File your Income Tax Return (ITR) for the relevant financial year. (2) TCS automatically appears in your Form 26AS and Annual Information Statement (AIS). (3) Under the "Tax Paid" section of your ITR, claim the TCS amount as tax credit. (4) If your total tax liability is less than the TCS collected, the difference is refunded. The seller/collector issues Form 27D as your TCS certificate — keep it for your records.

Is TCS applicable on international credit card spends? ▼

As of FY 2025-26, international credit card transactions are exempt from TCS. The Ministry of Finance issued a notification exempting credit card spends from LRS-related TCS. However, this exemption has been deferred and reinstated multiple times — verify the current status before making large international credit card purchases. Debit cards and wire transfers under LRS are still subject to TCS as per the standard rates.

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