TCS Rates Under LRS — FY 2026-27 (Budget 2026, from 1 April 2026)
- •Education via an education loan (Sec 80E): 0% TCS — fully exempt.
- •Education (self-funded) and medical treatment: 2% on the amount above ₹10 lakh per financial year.
- •Overseas tour packages: flat 2% from the first rupee — no threshold.
- •Everything else (foreign stocks, property, gifts, immigration): 20% above ₹10 lakh.
- •TCS is not an extra tax — it is credited against your PAN and adjustable or refundable in your ITR.
The Real Problem This Solves
Families discover TCS at the worst moment — at the bank counter, when a ₹20 lakh university fee transfer suddenly needs extra lakhs on top, or a broker's "invest globally" pitch turns out to lock up 20% of your capital for a year.
The rules changed again in Budget 2026, and most articles online still quote the old 5% and 20% slabs. This calculator applies the current FY 2026-27 rates to your exact purpose, amount, and remittances already made this year — so you know the debit before you initiate the transfer, and how much comes back at ITR time.
How TCS Is Calculated (With the ₹10 Lakh Rule)
For education (self-funded), medical, and "other" purposes, TCS applies only to the portion of your cumulative LRS remittances that crosses ₹10 lakh in the financial year. Tour packages are separate: flat 2% on every rupee. Education paid through a Section 80E loan is fully exempt.
Example: Ananya self-funds ₹25 lakh of tuition, her first remittance this year. The first ₹10 lakh is exempt; 2% on the remaining ₹15 lakh means the bank collects ₹30,000. Her cousin remitting the same ₹25 lakh through an education loan pays zero. Their uncle moving ₹25 lakh into US stocks pays 20% on ₹15 lakh — ₹3 lakh collected upfront, adjustable against his tax at filing.
| Purpose | Remitting ₹25 Lakh (first of the FY) | TCS Collected |
|---|---|---|
| Education via 80E loan | 0% | ₹0 |
| Education self-funded | 2% above ₹10L | ₹30,000 |
| Medical treatment | 2% above ₹10L | ₹30,000 |
| Tour package | 2% from first rupee | ₹50,000 |
| Investment / other | 20% above ₹10L | ₹3,00,000 |
Frequently Asked Questions
Is TCS on foreign remittance an extra tax I lose?
No. TCS is tax collected in advance against your PAN, visible in Form 26AS/AIS. It reduces the tax you owe at ITR filing, and any excess is refunded. The real cost is cash flow — your money is parked with the government until you file.
What changed in Budget 2026?
From 1 April 2026, TCS on self-funded education, medical treatment, and overseas tour packages dropped to 2% (education and medical keep the ₹10 lakh threshold; tour packages are 2% from the first rupee). Education funded by a Sec 80E loan stays at 0%, and other purposes such as foreign investment stay at 20% above ₹10 lakh.
Does the ₹10 lakh threshold apply per transfer?
No — it is your aggregate LRS remittances per financial year, tracked against your PAN across all banks. Two transfers of ₹6 lakh each in the same FY means the second one is partly above the threshold.
How do I claim my TCS back?
File your ITR. The TCS appears in Form 26AS and prefills as tax credit; it offsets your liability and the balance is refunded. Salaried? You can also declare it to your employer to reduce TDS from salary for the same year.
Does TCS apply to international credit card spends?
Credit card spends abroad are currently outside LRS TCS. Debit card and forex card loads, however, count as LRS remittances. Rules here have shifted more than once — confirm with your bank before a large trip.
Related Calculators
Remitting for education? The loan route changes everything
The same ₹25 lakh costs ₹30,000 in upfront TCS self-funded — and ₹0 via an education loan, which also earns a Section 80E interest deduction. Run the numbers on the loan side.
Open Education Loan Calculator →