LRS and TCS Calculator — Tax Collected at Source on Money Sent Abroad from 1 April 2026

The rules applied

A resident individual may remit up to USD 250,000 per financial year under the Liberalised Remittance Scheme for permitted purposes. The bank collects tax at source under section 394 (206C(1G)) at the rates in force from 1 April 2026: nil on education funded by a loan from a financial institution; 2% on education from own funds and on medical treatment, on the amount above ₹10 lakh in the year; 2% on overseas tour packages from the first rupee; and 20% on all other purposes — gifts, maintenance of relatives, property, investments — on the amount above ₹10 lakh. The ₹10 lakh threshold is cumulative across purposes other than tour packages. TCS is not an extra tax: it appears in Form 26AS and is credited against your income tax or refunded in the return, and a salaried remitter can ask the employer to adjust it against TDS. Read our note on LRS, TCS and family gifts.

Disclaimer. These calculators are provided for general information only. They apply the Indian and UAE tax rules as we understand them for the year stated and are not legal, tax or professional advice, and they do not create a client relationship. Your actual liability depends on your complete facts, on documents we have not seen and on law that changes; please confirm any figure with us before relying on it or acting on it. I. H. Khan and Associates accepts no liability for decisions taken on the basis of these tools. Nothing you enter leaves your browser unless you choose to send the result to us. Section numbers are those of the Income-tax Act, 2025, in force from 1 April 2026, with the familiar 1961 Act number in brackets; the rules are unchanged — see our section map.