TCS on Remittance Calculator — LRS Foreign Transfer Tax (FY 2026-27)
Sending money abroad from India — for a child's tuition, an investment, a holiday or a gift — can attract Tax Collected at Source (TCS) under the Liberalised Remittance Scheme (LRS). Budget 2025 raised the annual threshold from ₹7 lakh to ₹10 lakh and removed TCS on education funded by a loan. This calculator applies the FY 2026-27 rules to show exactly what TCS your bank will collect — and remember, TCS is not a cost: it is fully adjustable against your income tax.
💸 TCS on Your Remittance
LRS TCS Rates for FY 2026-27
| Purpose | Up to ₹10 lakh/year | Above ₹10 lakh/year |
|---|---|---|
| Education funded by an education loan | 0% | 0% |
| Education (self-funded) | 0% | 5% |
| Medical treatment | 0% | 5% |
| Overseas tour package | 5% | 20% |
| Other (investment, gift, property, maintenance) | 0% | 20% |
The ₹10 lakh threshold is per individual, per financial year, and applies across all LRS remittances combined (except tour packages, which are taxed from the first rupee at 5%). TCS only applies to the amount above the threshold — so a ₹15 lakh investment remittance is taxed at 20% on ₹5 lakh, not the whole ₹15 lakh.
Is TCS an extra tax I lose?
No — this is the single most misunderstood point. TCS is not an expense. The amount collected is deposited against your PAN and shows up in your Form 26AS. You claim it back as a credit against your income tax when you file your return, or adjust it against your advance tax. If your final tax liability is lower than the TCS collected, you get a refund. The only real cost is the cash-flow gap between paying it and claiming it.
TCS on money coming INTO India
TCS under LRS applies only to money sent out of India. Money you bring into India — such as salary, savings or end-of-service gratuity earned abroad — carries 0% TCS. NRIs crediting foreign earnings to an NRE or NRO account face no TCS on the inward transfer. If you are an NRI working in the Gulf, see how your payout is treated in our UAE gratuity calculator, which explains the NRE-account route for tax-free repatriation.
How TCS interacts with your income tax
Because TCS is creditable, the effective burden depends on your tax slab. If you would owe the tax anyway, TCS simply pre-pays it. To see your slab rate and total liability for the year, use our income tax calculator — then treat any TCS collected as tax already paid.
TCS Worked Examples (FY 2026-27)
A few common remittances and the TCS each one attracts, assuming this is your only LRS remittance in the year:
| Remittance | Purpose | TCS |
|---|---|---|
| ₹5,00,000 | Self-funded education | ₹0 (below ₹10L) |
| ₹18,00,000 | Education via education loan | ₹0 (exempt) |
| ₹15,00,000 | Self-funded education / medical | 5% × ₹5L = ₹25,000 |
| ₹12,00,000 | Investment / property / gift | 20% × ₹2L = ₹40,000 |
| ₹25,00,000 | Investment / property | 20% × ₹15L = ₹3,00,000 |
| ₹8,00,000 | Overseas tour package | 5% × ₹8L = ₹40,000 |
| ₹15,00,000 | Overseas tour package | 5% × ₹10L + 20% × ₹5L = ₹1,50,000 |
Notice that for every purpose except tour packages, TCS bites only on the slice above ₹10 lakh — so timing a large transfer across two financial years can keep each year under the threshold. Tour packages are the exception: they are taxed from the first rupee.
What Budget 2025 changed
Two changes took effect from 1 April 2025 and continue into FY 2026-27. First, the annual TCS-free threshold rose from ₹7 lakh to ₹10 lakh across LRS purposes. Second, TCS on education funded by a loan from a recognised lender was removed entirely — it is now 0% with no cap, where it was previously 0.5% above ₹7 lakh. Together these meaningfully reduce the up-front cash hit for students and families remitting tuition.
How to claim your TCS back
Because TCS is a pre-payment of tax, you recover it like any other tax credit:
- The bank deposits the TCS against your PAN; it appears in your Form 26AS / AIS within a few weeks.
- When you file your income tax return, claim the TCS as a credit against your total tax liability.
- If the credit exceeds your liability, the balance is refunded; if you have advance-tax dues, you can adjust the TCS against them instead.
Salaried taxpayers can also ask their employer to factor TCS into their TDS so the money isn't locked up until filing. Either way, the TCS is never an extra cost — only a timing difference between paying it and claiming it.