RBI LRS Framework / IT Act Section 206C(1G)
UK-India Remittance Tax & TCS Guide
An exhaustive statutory analysis of Tax Collected at Source (TCS) under Indian Income Tax Act s206C(1G) and HMRC remittance tax rules for UK tax residents.
Statutory Framework & Regulatory Limits
RBI Liberalised Remittance Scheme (LRS) & s206C(1G)
Outward funds transfers from India to the UK are regulated under the RBI Liberalised Remittance Scheme (LRS), which establishes an annual cap of $250,000 USD per resident individual per financial year (April 1 to March 31).
Under Section 206C(1G) of the Income Tax Act 1961, authorised dealer banks must withhold Tax Collected at Source (TCS) on remittances exceeding the statutory threshold of ₹7 Lakhs (₹700,000) at a rate of 20% for general investments and 5% for education/medical remittances.
Statutory Key Thresholds:
| Annual LRS Cap | $250,000 USD / Year |
| TCS Exemption Threshold | ₹7,00,000 (₹7 Lakhs) |
| General TCS Rate | 20% Above ₹7L |
| Education TCS Rate | 5% Above ₹7L |
| Refundability | 100% Claimable on ITR |
Indian TCS Outward Remittance Calculator
Remittance TCS Estimator
Enter remittance amount in INR to calculate Tax Collected at Source (TCS) under RBI LRS rules.
Frequently Asked Questions (FAQ)
Under Section 206C(1G) of the Indian Income Tax Act, remittances exceeding ₹7 Lakhs per financial year incur a 20% TCS rate for general investments/property and a 5% TCS rate for educational/medical expenses.
Yes. TCS is not an additional final tax; it is an advance tax withholding. You can claim full credit or refund for the TCS amount paid when filing your annual Indian Income Tax Return (ITR).
Under the RBI LRS framework, resident individuals in India can freely remit up to $250,000 USD (or currency equivalent) per financial year for permitted capital and current account transactions.