TCS on Foreign Remittance Calculator (India)

About the TCS on Foreign Remittance Calculator (India)

When you send money abroad under the Reserve Bank’s Liberalised Remittance Scheme (LRS) — fees for a child’s university, treatment abroad, money for family, an investment in foreign shares — your bank collects tax at source (TCS) once your remittances in the tax year pass ₹10 lakh. A tour operator collects it on an overseas tour package from the first rupee. This calculator works out the TCS on each remittance for Tax Year 2026-27 under section 394 of the Income-tax Act, 2025, as the Finance Act, 2026 amended it.

Enter what you have already remitted this year and the remittances you plan, each with its purpose. You see the TCS on each one, the part above the threshold it is charged on, the rate and the provision, what you pay in all, and how much more you can send before TCS starts. TCS is not lost: it is tax paid in your name, and the calculator explains how it comes back. Nothing you type leaves your browser.

The rates for Tax Year 2026-27

The Table in section 394(1) of the Income-tax Act, 2025, as amended by section 85 of the Finance Act, 2026:

• Education or medical treatment (Sl. No. 7(a)): 2% of what you remit above ₹10 lakh in the tax year. The Finance Act, 2026 cut this from 5%.
• Education paid from a loan taken from a financial institution — a bank, or an institution the Central Government notifies (section 129(3)(b)): no TCS (section 394(4)(b)).
• Every other LRS purpose (Sl. No. 7(b)) — investments, gifts, maintenance of relatives, travel you arrange yourself, donations: 20% above ₹10 lakh.
• Overseas tour programme packages sold to you (Sl. No. 8): 2% of the whole amount, with no threshold, collected by the seller. It was 5% up to ₹10 lakh and 20% above before the Finance Act, 2026 (Memorandum to the Finance Bill, 2026).

Without a valid PAN the rate is twice the normal rate or 5%, whichever is higher, capped at 20% (section 397(2)(b)(ii)); a PAN that is inoperative because Aadhaar was not linked counts as none (rule 162 of the Income-tax Rules, 2026).

How the ₹10 lakh threshold works

The threshold is for the tax year (1 April to 31 March) and for the person remitting. TCS starts with the remittance that takes the year’s total above ₹10 lakh and is worked out on the part above it; every later remittance that year bears TCS in full. The calculator adds up your remittances in the order you enter them, so it shows how the order matters: remitting ₹8 lakh for education and then ₹5 lakh as a gift costs ₹60,000 of TCS (20% of ₹3 lakh), the other way round ₹6,000 (2% of ₹3 lakh).

Loan-funded education carries no TCS but is still an LRS remittance, so it counts towards the ₹10 lakh. A tour package you buy from a tour operator is the operator’s sale, not your remittance: it neither uses the threshold nor bears the bank’s TCS again (section 394(4)(a)). The scheme itself allows a resident individual up to USD 2,50,000 a financial year, and every LRS remittance needs your PAN (RBI).

How you get TCS back

TCS paid to the government is treated as tax paid on your behalf (section 390(5)). Your bank or the seller gives you a TCS certificate, Form No. 133, every quarter, and the amount appears in your Annual Information Statement, Form No. 168. It is credited for the tax year in which it was collected (rule 203(7)).

• In your return: claim it against your tax for that year. If your TDS, TCS and advance tax are more than the tax you owe, the excess is refunded (section 431) — so a student or a parent with little taxable income gets it back by filing a return.
• Through your employer: a salaried person can give the employer the details in Form No. 122, and the employer takes the TCS into account and deducts that much less tax from salary (section 392(4)).

Limitations

• Covers TCS on LRS remittances and overseas tour packages only, for Tax Year 2026-27. TCS on goods, vehicles and luxury items is not covered.
• The calculator adds up all your LRS remittances in the tax year, through any bank, and charges each one on the part above ₹10 lakh in the order you enter them.
• No TCS is collected where you are liable to deduct TDS on the payment under another provision and have deducted it (section 394(5)); the calculator does not check this.
• It does not convert currencies or check the USD 2,50,000 LRS limit: enter rupee amounts.
• TCS is shown to the paisa; your bank may round it.

Privacy

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