LRS TCS Calculator — Foreign Remittance 2026
Sending money abroad for studies, treatment, a holiday or an overseas investment? See exactly how much tax your bank will collect at source under the rates in force from 1 April 2026 (Budget 2026) — and how much of it you get back.
TCS rates from 1 April 2026
| Purpose | Threshold | Rate (from 1 Apr 2026) | Earlier |
|---|---|---|---|
| Education funded by a loan from a financial institution | — | Nil | Nil |
| Education / medical treatment (own funds, incl. travel for it) | ₹10 lakh | 2% above threshold | 5% above |
| Overseas tour package | None | 2% on every rupee | 5% up to ₹10 lakh, 20% above |
| Investment, gift, maintenance, any other LRS purpose | ₹10 lakh | 20% above threshold | 20% above |
Tour packages: TCS = 2% × full amount
Section 206C(1G) of the Income-tax Act 1961, now Section 394 of the Income-tax Act 2025. The ₹10 lakh threshold has applied since 1 April 2025 (raised from ₹7 lakh). The LRS ceiling itself stays at USD 250,000 per person per financial year.
Examples
| Case | TCS |
|---|---|
| ₹15 lakh university fee paid from savings, nothing remitted earlier | 2% of ₹5 lakh = ₹10,000 |
| ₹8 lakh gift to a relative abroad after ₹6 lakh already sent this year | 20% of ₹4 lakh = ₹80,000 |
| ₹3 lakh Europe tour package | 2% of ₹3 lakh = ₹6,000 |
| ₹25 lakh fee funded by an education loan | Nil |
Frequently asked questions
What are the TCS rates on foreign remittances from 1 April 2026?
Education funded by a loan — nil; education or medical treatment from own funds — nil up to ₹10 lakh and 2% above (reduced from 5%); overseas tour packages — 2% with no threshold; all other purposes — nil up to ₹10 lakh and 20% above.
Is TCS on foreign remittance an extra cost?
No. TCS is tax collected in advance and credited against your income-tax liability. It appears in Form 26AS and AIS; claim it in your ITR and any excess is refunded with interest. It does tie up cash until the refund arrives.
Does the ₹10 lakh threshold apply per remittance?
No. The threshold is aggregate across all your LRS remittances in the financial year, across purposes and banks. Tour packages are the exception — TCS applies from the first rupee.
What is the LRS limit for 2026?
Resident individuals can remit up to USD 250,000 per financial year under the RBI's Liberalised Remittance Scheme.
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