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 Liberalised Remittance Scheme (LRS) is a tax mechanism used by the RBI and Income Tax Department to track foreign outward remittances by resident individuals. The primary purpose is to monitor large-value transactions and ensure they match the taxpayer's reported income.
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 (2026)
The Union Budget 2026 maintained the increased rates for foreign spending to encourage domestic investment. Here is the summary of current rates:
- Education and medical treatment: 5% on the amount above ₹10 Lakhs.
- Investment/Gift/Maintenance: 20% on the amount above ₹10 Lakhs.
- Overseas Tour Packages: 5% up to ₹10 Lakhs and 20% on the excess.
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.