LRS TCS Remittance Calculator

For covered LRS remittances, the TCS threshold is ₹10 Lakhs in a financial year. From 1 April 2026, qualifying education and medical-treatment remittances are subject to 2% TCS only on the amount exceeding ₹10 Lakhs, while other LRS purposes are subject to 20% TCS on the amount exceeding ₹10 Lakhs. The ₹10 Lakh threshold does not apply to overseas tour programme packages, for which 2% TCS applies from the first rupee. An eligible education-loan remittance is exempt from TCS under Section 206C(1G).

No TCS is collected under Section 206C(1G) where the LRS remittance is made out of a qualifying education loan from a financial institution for the purpose of pursuing education, even if the remittance exceeds ₹10 Lakhs. The exemption is provided by Section 206C(1G) itself and should not be described simply as an income-tax deduction under Section 80E.

TCS is a credit against the taxpayer's final income-tax liability; it is not a separate final tax on the remittance. The TCS credit is reflected through the tax information available to the taxpayer, including Form 26AS/AIS. It can be used to reduce the final tax payable, and any excess eligible credit can result in a refund when the income-tax return is processed.

The authorised dealer determines whether the transaction qualifies for the relevant TCS treatment based on the purpose and applicable law and may request supporting documents. For education-loan remittances, the statutory conditions for the Section 206C(1G) exemption must be satisfied. There is no single universal document such as an admission letter or medical certificate that guarantees the lower rate in every transaction.

Under the RBI's Liberalised Remittance Scheme, a resident individual, including a minor, may generally remit up to USD 250,000 per financial year (April–March) for permitted current or capital account transactions, or a combination of both, subject to the FEMA rules and transaction-specific restrictions.