India TCS Calculator: Tax Collected at Source on Foreign Remittance
Work out the Indian TCS (Tax Collected at Source) on a foreign remittance under the Liberalised Remittance Scheme (LRS) — and the total outflow including the tax — for sending money abroad, overseas tour packages, and foreign investments.
Adjust the inputs and select Calculate for a full breakdown.
Compare Common Scenarios
How the numbers shift across typical situations for this calculator:
| Scenario | TCS collected | Total outflow with TCS |
|---|---|---|
| 20% of ₹10L above threshold (₹2L) | $200,000.00 | $1,200,000.00 |
| 5% of ₹5L (education above threshold) | $25,000.00 | $525,000.00 |
| 0.5% of ₹8L (education loan) | $4,000.00 | $804,000.00 |
| 20% of ₹3L (overseas tour package) | $60,000.00 | $360,000.00 |
How This Calculator Works
Enter the remittance amount above the annual LRS threshold and the TCS rate. The calculator returns the TCS collected and the total outflow. TCS is collected by the bank or remittance provider at the time of the transaction on amounts above the threshold; it's not an extra tax you lose — it's a prepayment of your income tax that you can claim back or adjust when you file your return.
The Formula
Percentage Add-On
Rate is the tax or tip percentage applied to the amount
Worked Example
On a ₹10,00,000 remittance above the threshold at 20%, the TCS is ₹2,00,000, so ₹12,00,000 leaves your account in total. Under the LRS, resident individuals can remit up to a yearly limit abroad. TCS applies above an annual threshold (currently ₹7 lakh) at 20% for most purposes (foreign travel, investments, gifts), with a concessional rate for education and medical remittances. Crucially, TCS is not a final tax — it's collected upfront and credited against your income tax, refundable if your liability is lower.
Key Insight
TCS on foreign remittance is widely misunderstood, so the key reassurance first: it is not an additional tax you lose — it's a prepayment of your own income tax, collected at source by the bank/remittance provider, that appears in your Form 26AS/AIS and is fully adjustable against your tax liability or refundable when you file your return. So the ₹2,00,000 in the example isn't a cost; it's your money parked with the tax department until you reconcile it (the real cost is the cash-flow/opportunity impact of paying it upfront and waiting for the refund). The rules: it applies to remittances under the Liberalised Remittance Scheme (LRS) — the framework letting resident individuals send money abroad up to an annual limit for permitted purposes (travel, education, medical treatment, investment, gifts, maintenance of relatives). TCS kicks in only on amounts above the annual threshold (currently ₹7 lakh per financial year, aggregated across remittances), and the rate depends on purpose: 20% for most remittances and overseas tour packages, a concessional 5% for education and medical (and as low as 0.5% for education funded by an education loan). Practical implications: large foreign investments, overseas property, big international trips, or supporting family abroad can trigger significant upfront TCS, so plan cash flow; keep records to claim the credit; and salaried taxpayers can sometimes have employers factor TCS into TDS to ease the cash-flow hit. This calculator shows the TCS on the above-threshold portion at your chosen rate and the gross outflow; remember it's recoverable, confirm the current threshold and purpose-specific rates (these have changed recently and can change again), and note that the threshold applies per financial year across your aggregate LRS remittances.
Frequently Asked Questions
How is TCS on foreign remittance calculated?
Multiply the remittance amount above the annual threshold by the TCS rate. On ₹10,00,000 above the threshold at 20%, TCS is ₹2,00,000, so ₹12,00,000 leaves your account. TCS applies only to the portion exceeding the threshold (currently ₹7 lakh per financial year).
Is TCS an extra tax I lose?
No — this is the key point. TCS is a prepayment of your own income tax, collected upfront by the bank/provider. It shows in your Form 26AS/AIS and is fully adjustable against your tax liability or refundable when you file. The only real cost is the cash-flow impact of paying it upfront and waiting to reconcile it.
What is the LRS?
The Liberalised Remittance Scheme — the RBI framework allowing resident individuals to remit money abroad up to an annual limit for permitted purposes: foreign travel, education, medical treatment, investment, gifts, and maintenance of relatives. TCS applies to LRS remittances above the annual threshold.
What are the TCS rates?
Above the threshold, 20% for most remittances and overseas tour packages; a concessional 5% for education and medical remittances; and as low as 0.5% for education funded by an education loan. The rate depends on the purpose of the remittance. Rates and the threshold have changed recently, so verify current figures.
How do I get the TCS back?
Claim it as a credit when filing your income tax return — it's adjusted against your total tax liability, and any excess is refunded. It appears in your Form 26AS/AIS. Salaried taxpayers can sometimes ask their employer to factor TCS into TDS to ease the upfront cash-flow hit. Keep your remittance records to substantiate the credit.
Related Calculators
Methodology & Review
The TCS is the rate applied to the remittance amount above the annual threshold; the total is the remittance plus TCS. It models TCS on the portion exceeding the LRS threshold at a single rate and does not handle the lower rate for education/medical remittances or the threshold itself.
Written by Ugo Candido · Last updated May 22, 2026.