TCS on Foreign Remittances Calculator (2026) — LRS Rates & Threshold

Calculate Tax Collected at Source (TCS) on foreign remittances under LRS. Check ₹7 Lakh exemption limits and 0.5%, 5%, and 20% rates for education and tours.

Last updated: June 2026 for FY 2025-26Formula verified against RBI / government guidelinesReviewed by Ranveer Patel, Finance Professional
100% private: All calculations run in your browser. Your numbers never leave your device — no server, no storage, no account required.

How to Use This TCS LRS Calculator

Using our TCS LRS Calculator is simple and takes just a few seconds. Enter your values using the sliders or input fields above, and the results will update instantly — no need to click a calculate button.

All calculations are performed in your browser using standard financial formulas. Your data is never stored or transmitted to any server, ensuring complete privacy.

The results shown are estimates based on the inputs you provide. For precise figures, consult with your bank or financial advisor. Use this tool for quick comparisons, planning, and understanding how different variables affect your financial outcomes.

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Formula & Explanation

TCS = (Remittance - Threshold) × ApplicableRate (0.5%, 5%, or 20%)

Calculates TCS under Section 206C(1G) based on remittance category, applying 20% for investments/tours above ₹7 Lakhs, 5% for self-funded education, and 0.5% for education loan remittances.

Calculation Examples

₹12 Lakh International Tour Package

₹12 Lakh holiday package: 5% on first ₹7L, 20% on remaining ₹5L

TCS Collected: ₹1,35,000 (5% of 7L = 35k + 20% of 5L = 100k) | Total Outflow: ₹13,35,000

Benefits

  • Covers all October 2023 / 2026 amended LRS rates
  • Tracks ₹7 Lakh annual threshold accurately
  • Supports tour packages, education, and investments
  • Calculates total upfront cash outflow needed

Use Cases

  • Planning university tuition fees for study abroad
  • Budgeting international vacations and holidays
  • Remitting funds to US stock brokerage accounts

About TCS LRS Calculator

Our TCS on Foreign Remittances Calculator models the updated Tax Collected at Source (TCS) under RBI's Liberalised Remittance Scheme (LRS) under Section 206C(1G). Calculate applicable TCS on international tour packages, study abroad university fees, medical treatment, and overseas stock investing with exact ₹7 Lakh threshold tracking.

How TCS on Foreign Remittances (LRS) Works in India

Under the Reserve Bank of India's Liberalised Remittance Scheme (LRS), resident individuals can remit up to $250,000 per financial year. However, Section 206C(1G) of the Income Tax Act mandates Tax Collected at Source (TCS) by banks and travel operators.

The Revised TCS Thresholds

For most remittances (including overseas education and investments), no TCS applies on the first ₹7 Lakh per financial year. Beyond this threshold, rates vary from 0.5% (education loans) to 5% (self-funded education/medical) and 20% (foreign investments, travel, and tours).

Frequently Asked Questions

For purchasing an overseas tour program package, TCS is charged at 5% on amounts up to ₹7 Lakh per financial year. Any expenditure exceeding ₹7 Lakh attracts a 20% TCS rate. Unlike education remittances, the first ₹7 Lakh for tour packages does not have a 0% exemption — it is taxed at 5% from the first rupee.

Yes! TCS is not an additional final tax cost, but an advance tax credit. The TCS collected by your bank or authorized forex dealer reflects in your Form 26AS / Annual Information Statement (AIS). When filing your Income Tax Return (ITR), you can adjust this TCS against your final tax liability or claim a full refund directly to your bank account.

For educational remittances exceeding ₹7 Lakhs in a financial year: If the remittance is funded through an education loan from a recognized financial institution under Section 80E, the TCS rate is a nominal 0.5% on the amount above ₹7 Lakhs. If self-funded by parents or savings, the rate is 5% on the amount exceeding ₹7 Lakhs.

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