Model Tax Collected at Source under Section 206C(1G) for Indian residents remitting under LRS: cumulative ₹10 lakh non-tour pool, separate overseas tour-package rules, purpose-wise rates (including 20% above threshold), and an optional ITR credit illustration. Not tax advice — confirm with your authorised dealer and CA.
Keywords for search: TCS on foreign remittance calculator India, LRS TCS calculator 2025, Section 206C(1G), TCS refund via ITR, LRS TCS rates FY 2025-26.
Are you resident in India?
Selected: Investment in foreign stocks / ETFs / real estate. 20% above ₹10L (LRS)
Track ₹10 lakh cumulative non-tour LRS. Tour spend uses its own cumulative tracker.
No past transfers yet — add rows for a full year-view, or switch to direct totals.
LRS (non-tour) used before this transfer: ₹0
Remaining under ₹10 lakh threshold (non-tour): ₹10,00,000
Tour packages sent before this transfer: ₹0
Enter taxable income after deductions you already use, plus TDS and advance tax. We apply FY 2025-26 style slab illustrations from our tax helper and net off model TCS.
Regime
Add planned non-tour amounts in order. We flag the first plan that pushes cumulative non-tour LRS above ₹10 lakh (same rate family as your selected purpose for the TCS hint).
| Period | Education loan | Education self | Medical | Tour | Others |
|---|---|---|---|---|---|
| Pre-Oct 2023 | 0.5% > ₹7L | 5% > ₹7L | 5% > ₹7L | 5% flat* | 5% > ₹7L |
| Oct 2023 – Mar 2025 | 0.5% > ₹7L | 5% > ₹7L | 5% > ₹7L | 5%/20% @ ₹7L | 20% > ₹7L |
| From 1 Apr 2025 | 0% | 5% > ₹10L | 5% > ₹10L | 5%/20% @ ₹10L | 20% > ₹10L |
*Simplified narration for readability — follow statute and your dealer for exact vintage.
What is TCS on foreign remittance? When Indian residents send money abroad for permitted purposes under the Liberalised Remittance Scheme, authorised dealers may collect Tax Collected at Source under the Income-tax Act. The amount depends on why you remit, how much you have already sent in the same financial year, and whether spend falls in the general LRS pool or the separate overseas tour-package rules.
Why it exists. TCS helps track sizeable outbound flows and acts as a prepayment of tax for many assessees. It often appears on Form 26AS and can be squared off when you file your return, which is why households panic at the cash-flow impact even when the long-run cost may be lower after credits.
Liberalised Remittance Scheme. Resident individuals may remit abroad for eligible current and capital account transactions up to a stated annual dollar cap aggregated across channels, subject to documentation. TCS is only one part of the overall compliance picture alongside FEMA forms and bank KYC.
FY 2025-26 style rates. Finance Act 2025 shifted several thresholds to ₹10 lakh cumulative for the general non-tour LRS bucket. Qualifying Section 80E education-loan funded tuition is modelled at 0% TCS. Self-funded education and common student maintenance transfers often sit at 5% on rupees beyond that cumulative threshold. Medical treatment abroad is typically in the same 5% family above the threshold. Pure tour packages — bundled international travel and stay — use a parallel cumulative counter with 5% on the first ₹10 lakh of such package spend in the year and 20% thereafter. Most other LRS purposes, including gifts, family support where classified here, investments, and many business payments, move to 20% on the portion above ₹10 lakh cumulative non-tour.
What changed from 1 April 2025. Along with the move from a ₹7 lakh window to ₹10 lakh for many purposes, education loan routes gained fuller relief in common commentary, and the additional very high rate path under Section 206CCA for specified non-filers was noted as withdrawn for these collections. Always verify against the notified rules active on your transaction date.
Cumulative logic. The ₹10 lakh figure is not per-transfer; it aggregates eligible non-tour remittances in the same PAN and year. Crossing it mid-year splits a later transfer into a tax-free slice and a taxed slice. If cumulative lands exactly on ₹10 lakh, our model charges no TCS on that last rupee inside the window — the next rupee starts the taxable tail.
Tour packages. Because packages are defined as bundled offerings, they do not share the same cumulative tank as your stock investments or tuition wires. A family might exhaust the non-tour threshold on education and still have an independent tour-package ladder with its own 5% and 20% slices.
Credit and refund. Think of TCS like other prepaid taxes. Collect Form 27D, reconcile Form 26AS, report in the applicable ITR schedule, and e-verify. If total prepaid tax including TCS exceeds final liability, refunds usually route to your bank; if liability remains, TCS reduces what you must pay.
Form 27D and Form 26AS. The certificate from the bank should match portal credits. When numbers disagree, resolve quickly — quarterly collector returns sometimes need correction before your filing deadline pressure builds.
Planning ideas. Legitimate use of separate family limits, careful timing across March and April financial-year boundaries, education-loan structures that actually qualify, and correct purpose declarations all change outcomes more than guesswork. International card spend abroad has been treated differently in public guidance and is excluded from this LRS model.
NRIs. Residential status and account type decide whether LRS TCS is even in play. Many non-residents routing funds outside these rails should rely on adviser guidance rather than this resident-first estimator.
For transfer charges and provider comparison, use our remittance cost comparison. To compare income-tax regimes before net-tax planning, open the tax regime comparator. For itinerary budgets with live rates, try the travel forex budget calculator. NRIs evaluating India-sourced income can pair this page with the NRI tax calculator.
Tax Collected at Source (TCS) on foreign remittance is an amount your bank or authorised dealer may withhold when you send money abroad under the Liberalised Remittance Scheme (LRS), once rules for your purpose and cumulative amount apply. It is treated like prepaid tax and can usually be adjusted or refunded through your income-tax return, subject to your facts and documentation.
For most LRS purposes (other than overseas tour packages), your cumulative non-tour remittances in a financial year are compared to ₹10 lakh. The portion above ₹10 lakh for a given transfer attracts a purpose-specific rate (for example 5% for many education and medical categories, 20% for several others). Qualifying education funded by a specified Section 80E loan is modelled at 0% TCS. Overseas tour packages use a separate cumulative bucket with 5% up to ₹10 lakh of package spend and 20% beyond that.
Illustrative rates effective from 1 April 2025: qualifying Section 80E education loan route — 0%; self-funded education and living expenses for students — 5% on amounts above ₹10 lakh cumulative LRS (non-tour); medical abroad — 5% above that threshold; overseas tour packages — 5% on cumulative package spend up to ₹10 lakh and 20% above that separate threshold; other LRS purposes such as investments, gifts, and maintenance — 20% above ₹10 lakh LRS (non-tour). Always confirm at transfer time with your bank.
The cumulative threshold for many LRS purposes moved from ₹7 lakh to ₹10 lakh per financial year. Education funded by a qualifying Section 80E loan is generally relieved from TCS (modelled at 0% here). Tour-package thresholds aligned with the ₹10 lakh structure. Higher rates for certain non-filers under Section 206CCA were removed from that date for this context in common guidance — verify with current law and forms.
For the general LRS pool (excluding tour packages), the ₹10 lakh window is cumulative per resident per financial year across your qualifying non-tour outflows, not per transaction. Tour packages track a separate cumulative ₹10 lakh window for package-type spend.
Yes when rules apply, but treatment differs: many education-related transfers funded by a qualifying Section 80E loan are modelled at 0% TCS; self-funded tuition and typical student living expenses follow the 5% rate on amounts above the cumulative ₹10 lakh LRS threshold (non-tour). Generic wires labelled education without documentation may be treated differently at the bank.
0% applies in this model when the remittance is for eligible education and funded through a specified loan from a bank, NBFC, or similar under Section 80E — subject to lender and purpose checks. Self-funded fees and many maintenance transfers use the 5% rate only on amounts above the ₹10 lakh cumulative non-tour LRS threshold.
Yes. Bundled overseas tour packages (international travel plus accommodation together through a tour operator) typically follow a stand-alone cumulative rule: 5% on the portion of cumulative package spend up to ₹10 lakh in the year and 20% on the excess. Flights-only or hotel-only bookings are not modelled as a tour package here and fall in the general LRS bucket instead.
Often yes in effect: TCS usually acts as prepaid tax. If it exceeds your final tax after other prepaid taxes, you can generally claim a refund through your ITR; if it is lower, it usually reduces tax payable. Timelines and matching Form 26AS matter.
Collect your TCS certificate (commonly cited as Form 27D) from the collector, ensure credit appears in Form 26AS and AIS, then report TCS in the appropriate schedule when filing (for example Schedule TCS in returns that use it). E-verify your return; refunds generally route to the bank account on record after processing.
Form 27D is a TCS certificate issued by the collector (often your bank or authorised dealer). It states amounts collected, TAN, section, dates, and your PAN. Ask your dealer after the transaction if you do not receive it automatically.
Form 26AS is your tax credit statement hosted on the e-filing portal: it shows TDS, TCS, and other credits. After a foreign remittance, TCS entries typically appear within about a week to ten days. Match entries to Form 27D; mismatches may need follow-up with the bank.
Public guidance has stated that international credit card spending abroad is not classified under LRS in the same way for this levy and has been deferred; it is not modelled as LRS TCS here. Rules can change — follow official notifications.
Section 206C(1G) in this context targets specified collections on residents’ remittances under LRS. Typical NRO-to-NRE repatriation within banking norms is a different fact pattern. If you are not resident in India, discuss your status and account routing with your bank and CA.
Each resident individual has their own LRS limit and cumulative threshold. Legitimate separate transfers from separate persons, each with proper KYC and documentation, use separate limits. You must not use sham transfers solely to avoid tax; substance and documentation count.
Without PAN, authorised dealers may apply much higher withholding under tax law. This calculator shows a simple doubling of modelled TCS when you toggle “PAN not available” as a reminder, not a statutory quote.
Inward remittances into India are not the same fact pattern as outward LRS TCS. This page focuses on outward remittances by residents under LRS.
For many outward remittance contexts, the higher non-filer rate path under Section 206CCA was widely noted as removed from 1 April 2025 in budget commentary. Confirm on current forms and circulars for your transaction date.