Remittance / Purchase Details
Standard TCS rates applied.
TCS to Collect
₹0
Total Payable
₹0
TCS Calculation Analysis
Applicable TCS Rate
Threshold
₹10,00,000
TCS Threshold Status
Calculation based on standard LRS rules.
Common TCS Rate Card (2026)
Latest rates applicable for resident individuals and businesses.
| Type of Payment | Standard Rate | Threshold |
|---|---|---|
| LRS (Education/Medical) | 2% | ₹10 Lakhs |
| LRS (Others) | 20% | ₹10 Lakhs |
| Overseas Tour Program | 2% | No threshold |
| Luxury Motor Vehicle | 1% | ₹10 Lakhs |
| Sale of Goods (u/s 206C(1H)) | 0.1% | ₹50 Lakhs |
TCS Calculation Methodology
1. Threshold Limit: Most LRS transactions have a ₹10 Lakh combined annual exemption.
2. Marginal Calculation: TCS is only applied to the amount *exceeding* the threshold.
3. PAN Importance: If PAN is not provided, Section 206CC mandates a higher rate (usually 20%).
What is TCS under LRS?
Tax Collected at Source (TCS) under the Reserve Bank of India's Liberalised Remittance Scheme (LRS) is an upfront tax collected by authorized banks when you remit funds overseas for overseas vacations, university tuition fees, or international investments.
TCS is not a permanent sunk expense—it can be adjusted against your advance tax liability or claimed as an income tax refund when filing your annual ITR. Calculate your quarterly installment credits on our advance tax calculator and compute total annual tax liability on our income tax calculator. If you pay taxes in foreign jurisdictions, explore credits under Form 67 on our foreign tax credit calculator, plan international holiday budgets on our vacation goal planner, forecast study-abroad expenses with our education cost calculator, and evaluate net take-home salary on our salary breakup calculator.
For FY 2025-26, the exemption threshold for LRS remittances is ₹10 Lakhs per financial year. This limit applies to aggregate LRS remittances. TCS is a credit that can be adjusted while filing your Income Tax Return.
Latest TCS Rates & Threshold Limits (2026)
The Union Budget 2026 maintained the updated rate structure for foreign outward remittances and high-value purchases. Below is the official rate card:
| Remittance / Transaction Category | Exemption Threshold | TCS Rate (Up to ₹10L) | TCS Rate (Above ₹10L) |
|---|---|---|---|
| Overseas Tour Program Package | Nil (No threshold) | 5% | 20% |
| Foreign Education (Self-Funded / Parents) | Up to ₹10,00,000 | 0% (Nil) | 5% |
| Foreign Education (Funded by Bank Loan u/s 80E) | Up to ₹10,00,000 | 0% (Nil) | 0.5% |
| Overseas Medical Treatment | Up to ₹10,00,000 | 0% (Nil) | 5% |
| Foreign Investments / Gifts / Other LRS | Up to ₹10,00,000 | 0% (Nil) | 20% |
| Motor Vehicle Purchase (Section 206C(1F)) | Up to ₹10,00,000 | 0% (Nil) | 1% on total value |
Planning a big purchase? Check your Capital Gains Tax before redeeming assets for foreign transfers.
How to Claim TCS Refund?
TCS is not an additional cost but a form of prepaid tax. You can claim the entire amount back if your final tax liability is zero, or adjust it against your payable tax. For detailed calculations, use our TDS vs TCS comparison tool.
- Check Form 26AS: Ensure the TCS collected by your bank or dealer reflects in your Annual Information Statement (AIS).
- File ITR: Mention the TCS amount in the 'Tax Paid' section of your Income Tax Return.
- Adjust or Refund: The department will adjust it against your tax on salary/business or refund it to your bank account if you've overpaid.
Manage your quarterly obligations accurately with our Advance Tax Calculator.
Understanding TCS Rules in India (2026)
Tax Collected at Source (TCS) is a tax payable by a seller which he collects from the buyer at the time of sale. In recent years, the Indian government has significantly expanded the scope of Section 206C to include foreign remittances under the Liberalised Remittance Scheme (LRS).
The logic behind TCS on foreign spending is to track high-value transactions. For a traveler or an investor, TCS is not an "extra tax" but an advance tax payment. The amount deducted can be claimed as a credit while filing your ITR. Plan your long-term wealth correctly using our XIRR tool to see actual post-tax returns.
Recent Changes in LRS TCS Rates
For FY 2025-26, education and medical remittances attract 5% TCS above ₹10L, while other LRS purposes attract 20% on the excess. This makes cash-flow planning essential for global Indian families. Consider starting a SIP early to buffer against these costs.