TCS Rates on Outward Remittance
| Purpose of Remittance | Below Rs 10 Lakh | Above Rs 10 Lakh |
|---|---|---|
| Overseas Education - University/College fee payment - Living expenses of a student abroad - To GIC/Blocked account of student |
0% | 0% (if remitting education loan funds) else 2% of the amount above Rs 10 Lakh |
| Medical Treatment Abroad | 0% | 2% of the amount above Rs 10 Lakh |
|
Tour Remittance - International Tour Packages - International Tour-Related Payments |
Flat 2% regardless of the amount | |
| Maintenance of close relatives abroad | 0% | 20% of the amount above Rs 10 Lakh |
| Gift remittance | 0% | 20% of the amount above Rs 10 Lakh |
| Visa / Emigration / Consultancy fee | 0% | 20% of the amount above Rs 10 Lakh |
| Investment Remittance | 0% | 20% of the amount above Rs 10 Lakh |
Tax Collected at Source (TCS) is a tax that may be levied on outward remittance transactions from India depending on;
- The amount being transferred abroad
- Remittance history in the present financial year
- Purpose of remittance
- Source of funds
TCS is only applicable to remittance transactions done under the LRS scheme of the RBI.
Please Note: This TCS amount is not an additional charge and can be later claimed as credit or refund when filing income tax returns.
How Is TCS Calculated?
- The TCS free limit of Rs 10 Lakh is not applied to each remittance transaction separately.
- Instead, to calculate TCS, the sum total of forex transactions done in the present financial year is considered.
- If it is below Rs 10 Lakhs, then TCS won’t apply to your remittance transaction (except for international tour-related payments).
- If it is above Rs 10 Lakhs, then the TCS applicable will be calculated based on your amount, purpose of remittance and source of funds.
Here is a TCS calculator you can use to find out TCS owed (if any) on your money transfer abroad;
TCS Calculator Tool - ExTravelMoney.comTCS on Remittance Transactions by NRIs
TCS is only applicable for remittance transactions done under the LRS Scheme.
NRI remittances don’t fall under LRS.
Thus the transactions done by NRIs such as NRO to NRE transfers, NRE repatriation, and purchase of foreign currency during their visit to India won’t come under the scope of the TCS rule.