FX Rate Live · NRI & Remittance Tools

TCS on Foreign Remittance Calculator

A free, neutral calculator to estimate Tax Collected at Source (TCS) on money sent abroad under the RBI's Liberalised Remittance Scheme (LRS) — for FY 2026-27. No sign-up, no service being sold, just the numbers.

Note for NRIs: TCS under Section 206C(1G) applies to resident Indians remitting money abroad under LRS. If you are an NRI, your outward remittances (NRO→NRE transfers, repatriation, etc.) are governed by FEMA rules, not LRS/TCS — this calculator does not apply to you in that scenario.

TCS Calculator FY 2026-27 rates

Remittance amount now (₹)

Already remitted this FY (₹)

Cumulative LRS remittances already made in FY 2026-27, across all banks.

Purpose of remittance

LRS utilisation this FY

₹0 of ₹10,00,000 threshold

Taxable amount

—

TCS payable

—

TCS rate applied: — Total payable (remittance + TCS): —

Education remittances funded through a specified education loan attract 0% TCS, regardless of amount — keep your loan sanction letter handy as proof for the bank.

This is an estimate based on published FY 2026-27 rates and does not account for PAN-Aadhaar linkage status (unlinked PAN can double the applicable rate), multiple remittance channels, or bank-specific documentation requirements. TCS is not an extra cost — it is adjustable against your income tax liability or refundable when you file your ITR. Consult a chartered accountant for transaction-specific advice.

What is TCS on foreign remittance?

TCS (Tax Collected at Source) is an amount collected by your bank or authorised dealer when you send money abroad under the RBI's Liberalised Remittance Scheme (LRS). It is governed by Section 206C(1G) of the Income-tax Act and applies to resident individuals — not to NRIs remitting under FEMA rules. TCS is not an additional charge on top of what you send; it is an advance tax credit that gets recorded against your PAN and can be claimed back or adjusted when you file your Income Tax Return.

₹

Advance tax credit

TCS is deposited against your PAN and shows up in Form 26AS/AIS — it reduces your tax bill or comes back as a refund, it isn't a fee.

🌐

Applies under LRS

Covers education, medical treatment, travel, family maintenance, gifts and investment remittances made by resident individuals.

📊

PAN-based, cumulative

Your LRS usage is tracked per financial year against your PAN, across every bank — not reset per transaction or per bank.

TCS rates for FY 2026-27

Rates below reflect the Finance Act 2026 revision, effective 1 April 2026. The threshold for most LRS categories is ₹10 lakh per financial year, cumulative across all remittance channels.

Purpose	Up to ₹10 lakh	Above ₹10 lakh	Notes
Overseas education (loan-funded)	NIL	NIL	Regardless of amount, if funded via a specified education loan
Overseas education (self-funded)	NIL	2%	University fee, living expenses, GIC/blocked account
Medical treatment abroad	NIL	2%	Hospital and treatment-related remittance
Overseas tour package	Flat 2%	Flat 2%	No threshold — applies from the first rupee
Maintenance of relatives	NIL	20%	Family support remittance under LRS
Gift remittance	NIL	20%	Money sent abroad as a gift under LRS
Visa / emigration / consultancy	NIL	20%	Visa processing, emigration, advisory fees
Investment remittance	NIL	20%	Foreign stocks, property, capital transfers

Rates sourced from the Finance Act 2026 (effective 1 April 2026). Tax rules can change in future Budgets — always verify current rates with your bank or a chartered accountant before a large remittance.

How TCS is calculated

Pick the purpose

Education, medical, tour and other LRS purposes carry different TCS rates from 0% to 20%.

Add prior remittances

Money already sent abroad this financial year counts toward your cumulative ₹10 lakh threshold.

Apply the threshold

Most categories are TCS-free up to ₹10 lakh per year; only the amount above that is taxed.

Bank collects TCS

Your bank or dealer collects TCS at the time of remittance and reports it against your PAN.

Can TCS be claimed back?

Yes. TCS collected on your remittance is not a final tax — it is credited to your PAN and reflected in Form 26AS and your Annual Information Statement (AIS). When you file your Income Tax Return, this amount is adjusted against your total tax liability. If your tax liability is lower than the TCS collected, the difference is refunded to you. If you do not file an ITR for that year, the TCS is not automatically refunded — filing is required to claim it back.

Who should use this calculator?

Resident Indians remitting money abroad for a child's education
Families arranging medical treatment overseas
Travellers booking international tour packages
Anyone sending gifts or supporting relatives abroad under LRS
Investors remitting funds for foreign stocks, property or other assets

TCS on Foreign Remittance FAQs

What is TCS on foreign remittance?

TCS (Tax Collected at Source) is a tax collected by your bank when you remit money abroad under the RBI's LRS. It is credited against your PAN and adjusted or refunded when you file your Income Tax Return.

Is TCS an extra cost on top of my remittance?

No. TCS is an advance tax credit, not a fee. You pay it at the time of remittance, but it reduces your income tax liability or is refunded when you file your ITR.

What is the TCS-free threshold for FY 2026-27?

Most LRS categories are TCS-free up to ₹10 lakh cumulative per financial year, per PAN. Overseas tour packages are the exception — a flat 2% applies from the first rupee, with no threshold.

Is TCS applicable to NRIs?

No. Section 206C(1G) TCS applies to resident Indians remitting under LRS. NRI remittances (such as NRO to NRE transfers or repatriation) are governed by FEMA rules, not LRS or TCS.

Does TCS apply if my education is funded by a loan?

No. Remittances for overseas education funded through a specified education loan attract 0% TCS, regardless of the amount.

How is TCS calculated on an overseas tour package?

Tour packages attract a flat 2% TCS on the full package amount, with no ₹10 lakh threshold — unlike other LRS categories.

Can I claim TCS back while filing my ITR?

Yes. TCS collected during the year is reflected in Form 26AS and AIS, and is adjusted against your tax liability or refunded when you file your Income Tax Return for that year.

Is the ₹10 lakh threshold per transaction or per year?

Per financial year, cumulative across all your remittances and all banks — not per individual transaction.

What happens if my PAN is not linked to Aadhaar?

An unlinked PAN can result in TCS being collected at a higher rate. Verify your PAN-Aadhaar linkage status before making a large remittance.

Does TCS apply to forex card loading or currency notes for travel?

Generally yes, if the purchase falls under an LRS purpose and your cumulative LRS utilisation for the year crosses the applicable threshold.

Related tools

This calculator provides an estimate based on publicly available TCS rates under Section 206C(1G) of the Income-tax Act as revised by the Finance Act 2026 (effective 1 April 2026). FX Rate Live is not a chartered accountancy or tax advisory service, and this tool does not constitute tax or legal advice. Actual TCS applicability depends on your complete LRS utilisation history across all banks, PAN-Aadhaar linkage status, documentation, and prevailing government rules at the time of remittance. Please verify with your bank's authorised dealer or a chartered accountant before making a large remittance.

Verified by Finance Team

Our team of financial analysts monitors global exchange rates 24/7 to provide you with the most accurate data for INR, SAR, USD, and more. With 5+ years of experience in forex trends.