TCS on Foreign Remittance Calculator

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TOOLTCS on Foreign Remittance Calculator

Informational only. Estimates use TCS rates effective 1 April 2026 under Section 394(1) of the Income-tax Act, 2025 (Union Budget 2026-27). Banks apply TCS per-transaction and may not know your remittances at other banks — verify with your authorized dealer or a chartered accountant before remitting. See our disclaimer.

Remittance Purpose

Cut from 5% to 2% effective 1 April 2026 (Union Budget 2026-27).

Remittance Amount (Rs)

Rs 15.00 L

Prior LRS Remittances This FY (Rs)

Cumulative across all purposes/banks, April 1 – March 31.

TCS of ₹10,000 at 2%

Only the ₹5,00,000 above the ₹10 lakh threshold is taxed. Cut from 5% to 2% effective 1 April 2026 (Union Budget 2026-27).

TCS Amount

₹10,000

Effective Rate

0.67%

Taxed Above Threshold

₹5,00,000

Total Outgo

₹15,10,000

Threshold Breakdown

Prior remittances this FY₹0

This remittance₹15,00,000

Cumulative after this remittance₹15,00,000

Within Rs 10L threshold (tax-free)₹10,00,000

Taxed at 2%₹5,00,000

TCS Collected₹10,000

Total Outgo (Amount + TCS)₹15,10,000

TCS is a prepayment, not a fee. The amount collected shows up in your Form 26AS/AIS and is fully creditable against your total income tax liability for the year. If your tax liability is lower, you get it back as a refund when you file your ITR. Salaried employees can also declare it to their employer via Form 12BAA to reduce monthly TDS on salary, instead of waiting for a refund.

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TL;DR

Free TCS on Foreign Remittance Calculator (LRS) for FY 2026-27 — covers all 6 remittance purposes with the post-Budget 2026 rate cuts in one flow, plus a side-by-side comparison across purposes.
Education and medical remittances above the ₹10 lakh threshold: TCS cut from 5% to 2%, effective 1 April 2026 (Union Budget 2026-27).
Overseas tour packages: the ₹10 lakh threshold is gone — a flat 2% TCS applies from the first rupee.
TCS is not extra tax — it is a prepaid credit you claim back via your income tax return or adjust against salary TDS using Form 12BAA.

About TCS on Foreign Remittance Calculator

The Liberalised Remittance Scheme lets resident individuals send up to $250,000 a year abroad for education, medical treatment, travel, investment, and gifts — and banks collect Tax Collected at Source (TCS) on much of it. The Union Budget 2026-27 cut the education/medical TCS rate from 5% to 2% and removed the threshold on overseas tour packages entirely, both effective 1 April 2026. This calculator applies the ₹10 lakh cumulative threshold and the post-Budget rates across all six remittance purposes in one flow, and shows how the same amount is taxed differently depending on why you are sending it.

How It Works

TCS under the LRS is governed by section 394(1) of the Income-tax Act, 2025 (successor to the erstwhile section 206C(1G)). For most purposes, the first ₹10 lakh remitted in a financial year is TCS-free; only the amount above that cumulative threshold is taxed, at a rate that depends on why you are sending the money. Education and medical remittances above ₹10 lakh dropped from 5% to 2% from 1 April 2026. Education funded by a loan from a bank or NBFC specified under Section 80E keeps its concessional 0.5% rate, untouched by the Budget. Investment, gift, and general maintenance remittances stay at 20% above ₹10 lakh.

Overseas tour packages work differently after Budget 2026: the ₹10 lakh threshold was removed entirely, and the old tiered structure (5% up to ₹10 lakh, 20% above) was replaced with a flat 2% on the full package price — a net cut for large bookings but a new cost on small ones that used to fall below the threshold.

TCS is a prepayment, not a fee. The amount collected is credited to your PAN and shows up in your Form 26AS and AIS. You adjust it against your total income tax liability when filing your ITR, and any excess is refunded. Since October 2024, salaried employees can also submit Form 12BAA to their employer to have TCS already paid reduce their monthly salary TDS, rather than wait for a refund.

Who Is This For

A parent remitting a full year of tuition for a child studying abroad, checking whether a loan-funded remittance is cheaper than paying out of savings after TCS.

A patient booking overseas medical treatment who wants to know the exact TCS hit on a ₹12-15 lakh treatment-plus-travel remittance.

A family comparing an overseas tour package quote against the new flat 2% TCS, since the old ₹10 lakh threshold no longer shields smaller bookings.

An NRI-adjacent investor or gift-giver moving money abroad for investment or family maintenance, checking the unchanged 20% rate above ₹10 lakh.

A salaried employee planning multiple remittances across the financial year, tracking how much of the ₹10 lakh cumulative threshold is already used up.

Scope note: Calculations reflect TCS rates and thresholds effective 1 April 2026 per the Union Budget 2026-27 Finance Bill, as passed — actual bank implementation can vary slightly around effective dates and rounding. This tool assumes you accurately report prior remittances made through other banks or dealers, since no single bank can see your full-year cumulative total. It does not cover TCS on remittances outside LRS (e.g. business remittances) or account for double taxation avoidance agreement claims. Verify your specific transaction with your bank’s forex desk or a chartered accountant before remitting.

Disclaimer: This calculator is for informational and educational purposes only and does not constitute financial, tax, or legal advice. Results are estimates based on publicly available tax slabs and formulas. Consult a qualified Chartered Accountant, tax professional, or financial advisor for guidance specific to your situation. Built and maintained by the WOWHOW Team with 14+ years of software development experience.

How to Use

Select your remittance purpose — education (loan or self-funded), medical, tour package, investment/gift, or other

Enter the remittance amount in rupees you plan to send

Add any prior LRS remittances already made this financial year (April–March) — the ₹10 lakh threshold is cumulative across all purposes and banks

Read the TCS amount, effective rate, and verdict — then expand the comparison table to see how the same amount is taxed under every other purpose

Frequently Asked Questions

For remittances above the ₹10 lakh cumulative threshold in a financial year: education (self-funded) and medical treatment are taxed at 2% (cut from 5% effective 1 April 2026); education funded by a loan from a specified financial institution is taxed at 0.5% (unchanged); investment, gift, and maintenance of relatives abroad are taxed at 20% (unchanged); and overseas tour packages are taxed at a flat 2% on the entire amount, with no threshold at all, effective 1 April 2026. Below ₹10 lakh cumulative, most purposes attract no TCS — except tour packages, where 2% applies from the first rupee.

Yes. TCS is not an additional tax — it is collected upfront and credited to your PAN, visible in your Form 26AS and Annual Information Statement (AIS). You claim it against your total income tax liability when you file your ITR. If your tax liability is lower than the TCS collected, the excess is refunded. Salaried employees can also submit Form 12BAA to their employer to reduce monthly salary TDS by the TCS already paid, instead of waiting for a refund at year-end.

Yes, but at a concessional rate. If the remittance for education is funded by a loan taken from a bank or financial institution specified under Section 80E of the Income-tax Act, TCS is charged at only 0.5% on the amount above ₹10 lakh in a financial year — far lower than the 2% rate that applies to self-funded education remittances. This concessional 0.5% rate was not changed by the Union Budget 2026-27; only the general education/medical rate was cut from 5% to 2%.

The ₹10 lakh threshold is unchanged for FY 2026-27 and applies cumulatively — across all your LRS remittances in the financial year (1 April to 31 March), regardless of purpose or which bank or authorized dealer processes the transfer. The one exception is overseas tour packages: the Union Budget 2026-27 removed the threshold entirely for this category, so TCS at 2% now applies on the full package price from the first rupee.

Yes. Effective 1 April 2026, the Union Budget 2026-27 (Finance Bill, Clause 73, amending section 394(1) of the Income-tax Act, 2025) cut the TCS rate on education and medical remittances from 5% to 2% for amounts above ₹10 lakh, and simplified overseas tour package TCS to a flat 2% with no threshold (previously 5% up to ₹10 lakh, 20% above). The 20% rate on investment, gift, and general remittances, and the 0.5% concessional rate for loan-funded education, were both left unchanged.

TCS collected by your bank or authorized dealer is reported against your PAN and appears in your Form 26AS and Annual Information Statement (AIS), usually within a few weeks of the transaction. When you file your ITR, the TCS credit is pre-filled or can be manually entered under the tax credit section, and it is adjusted against your total tax liability for the year — the same way TDS is adjusted. Any excess over your actual liability is refunded.

The ₹10 lakh threshold and the 20%/2% rates apply on a cumulative financial-year basis (1 April to 31 March), not per transaction. If you have already remitted, say, ₹6 lakh earlier in the year, only the amount that pushes your cumulative total past ₹10 lakh is taxed on your next remittance — not the full new amount. Banks can only see remittances made through them, so if you use multiple banks or authorized dealers, you are responsible for tracking your own cumulative total accurately.