LRS TCS Calculator — Section 206C(1G) India — FY 2026-27
Calculate Tax Collected at Source (TCS) on outward foreign remittances under the Liberalised Remittance Scheme (LRS) per Section 206C(1G). Rates vary by purpose: education with loan 0.5%, education (self-funded) 5%, medical 5%, investment in foreign equity 20%, tour packages 5-20%, all with a ₹7 lakh annual threshold. TCS is a PREPAYMENT — adjust against income-tax liability at ITR filing.
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Use the full Currency Converter for interactive computation with your exact inputs. This page covers the specific context + rules for your query intent.
Key rules at a glance
- Education (loan-funded): 0.5% above ₹7L
- Education (self / medical): 5% above ₹7L
- Overseas tour packages: 5-20%
- Investment in foreign equity: 20% above ₹7L
- ₹7 lakh threshold applies per FY per sender
LRS and the ₹7 lakh threshold
LRS allows Indian residents to remit up to $250,000 (≈ ₹2.08 crore) per FY for ANY purpose — investment, education, medical, gifts, foreign travel. Up to ₹7 lakh annual aggregate remittance is TCS-FREE. Above ₹7L, TCS applies based on purpose. The ₹7L is PER REMITTER, not per remittance or per bank — aggregate across all LRS transactions in the FY.
TCS rates by purpose (post 1-Oct-2023)
(1) Education funded by loan under Section 80E: 0.5% on amount above ₹7L. (2) Education (self-funded) + medical treatment: 5% above ₹7L. (3) Investment in foreign equity / real estate / gifts to non-relative: 20% FROM RUPEE ONE (no threshold applies to these categories). (4) Overseas tour packages: 5% up to ₹7L, 20% above ₹7L.
TCS is not a final tax — it is a credit
Critical: TCS is NOT an additional tax. It is a PREPAYMENT of your income-tax liability that you claim credit for in ITR. If your total tax liability for the year is ₹5L and TCS paid = ₹2L, your remaining liability is ₹3L. Excess TCS is refundable. For those below taxable income, 100% of TCS is refundable on filing ITR.
How to report LRS TCS in ITR
AD Banks (authorized dealers) deduct TCS at remittance time and deposit with Government. You get a TDS/TCS certificate (Form 27EQ) reflecting in your Form 26AS + AIS. When filing ITR: report TCS under "Taxes Paid" > "TCS". Net against tax liability. The TCS number auto-flows from Form 26AS in the pre-filled ITR.
LRS TCS Calculator — FAQ
What is LRS TCS?
Tax Collected at Source on foreign remittances sent by Indian residents under the Liberalised Remittance Scheme ($250K annual cap). Per Section 206C(1G) and post-1-Oct-2023 amendments. Rates vary by purpose (0.5% to 20%). TCS is prepayment of income tax, not additional tax.
Is TCS applicable on sending money to family abroad?
Gifts to RELATIVES (parent, spouse, sibling, child) are exempt from TCS under LRS purpose-code "Gift". Gifts to non-relatives or for general support: TCS at 20% from rupee 1 (investment-purpose treatment). Always use correct LRS purpose code at the bank to avoid higher TCS rate.
Do I get back TCS paid?
Yes, TCS is a credit against your income tax liability. Excess TCS is refunded when filing ITR. Example: if TCS paid = ₹40K but total tax = ₹30K, ₹10K refund. If you have no tax liability, 100% of TCS is refundable. File ITR even if not otherwise required, to claim TCS refund.
Is the ₹7 lakh threshold per bank or per year?
Per financial year, aggregated across all LRS remittances from a single remitter. Banks cross-report via Form 15CC + AIS. If you send ₹5L via HDFC and ₹4L via ICICI in same FY, total is ₹9L — TCS applies on ₹2L (above ₹7L threshold) per the purpose-specific rate.
When does 20% TCS apply?
For LRS purposes classified as INVESTMENT: foreign stocks / property / non-relative gifts. Also for tour packages above ₹7L aggregate annual. 20% is the punitive rate intended to discourage tax arbitrage via foreign investment channels.