TCS on Foreign Remittance Calculator India — LRS Rates FY 2025-26
Calculate TCS collected by your bank when you send money abroad under LRS. Section 206C(1G) rates: education loan NIL (0%), education own funds 5%, medical 5%, tour packages 5%, investment & others 20% — all above ₹10 Lakh threshold. Updated for Budget 2025 — education loan TCS abolished, all thresholds unified to ₹10L. TCS is advance tax — fully refundable via ITR.
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How to Use This Calculator
TCS Calculator tab
Select your purpose of remittance (education loan / education own funds / medical / tour package / investment & others), enter the remittance amount in ₹, and for education purposes confirm whether it is funded by an education loan. The calculator shows TCS rate, threshold, TCS amount collected by your bank, and total outflow from your account. Remember: TCS is advance tax — not a permanent cost.
Purpose-wise Rates tab
Enter a remittance amount and see TCS for all 5 LRS purposes side by side. Useful for planning — for example, if you are remitting for a study tour that includes tuition, the categorisation (education vs tour package) significantly affects TCS. A rate table is included for reference.
Claim TCS Refund tab
Enter your total TCS collected this FY (from Form 27D / Form 26AS / AIS) and your income tax liability for FY 2025-26. The calculator shows how much TCS is adjustable against your tax due and how much is refundable via ITR. Includes instructions on where to find your TCS certificate.
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The Formula
TCS on foreign remittance is calculated by your Authorised Dealer (AD) bank under Section 206C(1G) of the Income Tax Act, 1961. The formula is simple:
Where:
Remittance Amount = Amount in ₹ being sent abroad via LRS
Applicable Threshold = ₹10 Lakh (education own/medical/investment) or ₹0 (tour packages) or N/A (education loan = NIL)
TCS Rate = Nil (education loan) / 5% (education own, medical, tour) / 20% (investment & others)
Total Bank Outflow = Remittance Amount + TCS Amount
TCS Refund via ITR = max(0, TCS Paid − Income Tax Liability)
Net Tax Payable = max(0, Income Tax Liability − TCS Paid)
The threshold is per individual per financial year and is aggregated across all remittances and all AD banks. If you remit ₹6 Lakh in May and ₹5 Lakh in November (total ₹11 Lakh) for investment, your bank will collect 20% TCS on ₹1 Lakh (₹11L − ₹10L threshold) = ₹20,000 TCS. For education remittances funded by a loan from a financial institution, TCS is NIL regardless of amount.
Example
Priya — sending her daughter to the UK for a Master’s degree
Priya is a salaried professional in Pune. Her daughter has been admitted to a university in the UK. Priya remits ₹25,00,000 through her bank under LRS for tuition and living expenses, funded by an education loan from SBI.
Step 1: Identify purpose and rate
Step 2: TCS Computation
Step 3: Impact on tax
Had Priya used own funds (no loan), TCS would have been ₹75,000 (5% on ₹15L above ₹10L threshold). The education loan route saves ₹75,000 in TCS cash flow entirely — Budget 2025 made TCS NIL for education remittances funded by loans from specified financial institutions.
Amit — investing ₹20 Lakh in overseas equity
Amit wants to diversify into US stocks via an Indian brokerage platform. He remits ₹20,00,000 under LRS for investment in foreign securities.
Amit’s tax liability for FY 2025-26 is ₹1,80,000. After adjusting TCS credit of ₹2,00,000, he gets a refund of ₹20,000 from the Income Tax Department when he files his ITR. The TCS is not a permanent cost — but he must plan for the cash outflow at the time of remittance.
LRS TCS Rates — Section 206C(1G) FY 2025-26
FAQ
• Education loan (financial institution): Nil (0%) — no TCS regardless of amount
• Education own funds: 5% on amount above ₹10 Lakh
• Medical treatment abroad: 5% on amount above ₹10 Lakh
• Overseas tour packages: 5% on entire amount (no threshold — from ₹1)
• Investment, property, gifts, maintenance & all other LRS: 20% on amount above ₹10 Lakh
Budget 2025 (Finance Act 2025) unified all thresholds to ₹10 Lakh and made education loan TCS NIL. Section 206AB was abolished from 1 April 2025 and is no longer applicable. Budget 2026 proposes further reductions (education/medical 5%→2%, investment 20%→10%) from April 2026 — not yet effective.
1. Your AD bank deposits TCS to the government and issues Form 27D (TCS certificate).
2. The TCS amount appears automatically in your Form 26AS (Part A2) and AIS (Annual Information Statement) on the income tax portal.
3. When you file your ITR, the TCS credit is pre-filled and adjustable against your total tax liability.
4. If TCS paid exceeds your tax liability, the excess is treated as a refund and credited to your bank account, with interest at 6% p.a. under Section 244A from 1 April of the assessment year.
5. Deadline: File ITR by 31 July 2026 (non-audit cases) for FY 2025-26 to claim the refund. Late filing may delay or reduce refund entitlement.
International credit card spending abroad: Budget 2023 originally included international credit card spends under LRS (and therefore TCS-eligible), but the government deferred this in May 2023. As of FY 2025-26, international credit card transactions are NOT included under LRS and are TCS-exempt.
UPI / Rupay card abroad: Transactions on Rupay cards and UPI for international payments are also currently excluded from LRS and TCS.
• Education (loan from bank/NBFC): No TCS at any amount — TCS is NIL from FY 2025-26.
• Education (own funds), medical, investment & others (below ₹10 Lakh): No TCS. The entire remittance is within the threshold.
• Overseas tour packages: TCS applies from ₹1 regardless of amount. There is no threshold for tour packages — 5% TCS on every rupee.
Important: the threshold is cumulative across the financial year and across all AD banks. If you remit ₹6 Lakh in April and ₹6 Lakh in September for investment (total ₹12 Lakh), TCS of 20% will apply on ₹2 Lakh (the amount above ₹10 Lakh) when your second remittance crosses the threshold.