What is TCS on foreign remittance under LRS?
Under the Liberalised Remittance Scheme (LRS), banks collect TCS on foreign remittances above ₹7 lakh in a financial year — generally 20% for investments and travel, but only 5% for education and medical treatment (0.5% if funded by an education loan). The TCS is not an extra cost; it's adjustable against your income-tax liability or refundable.
1The rates
Above ₹7 lakh/year: 20% for most purposes (overseas investment, gifts, general travel); 5% for medical treatment and education (above ₹7 lakh); 0.5% for education funded by a loan. Overseas tour packages: 5% up to ₹7 lakh, then 20%.
2It's a credit, not a cost
TCS is collected by the bank and reflected in your Form 26AS/AIS. You claim it as a credit against your total tax when filing your ITR, or get it refunded — so it only affects cash flow, not your final tax.
Frequently asked questions
Can I get the TCS on foreign remittance back?
Yes — TCS is not a tax on you; it's a prepaid credit. It appears in your Form 26AS/AIS, and you adjust it against your income-tax liability or claim a refund when you file your ITR.
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General information for AY 2026-27, not professional advice. Laws change with each Finance Act, notification or amendment and depend on your specific facts — verify the current position with a licensed CA or advocate before acting.