AIS Foreign Remittance Entries: LRS, TCS, and How to Match for AY 2026-27

TL;DR

• Authorised dealers report every outward foreign remittance under the Liberalised Remittance Scheme in AIS under SFT-013, regardless of amount.
• From 1 October 2023, TCS at 20% applies on remittances above Rs. 7 lakh in a financial year, with concessional rates for education and medical purposes.
• The TCS deducted shows in Form 26AS Part B and can be claimed back as TDS credit in your ITR.
• LRS-funded foreign assets must be disclosed in Schedule FA of ITR-2 or ITR-3, regardless of income earned.
• Non-disclosure of foreign assets attracts Section 43 of Black Money Act with penalty of Rs. 10 lakh per year of non-disclosure.

What this means in plain terms

The Liberalised Remittance Scheme allows resident individuals to remit up to USD 2,50,000 per financial year for permitted purposes: foreign travel, education, medical treatment, gifts, donations, investment in foreign stocks or property, and current account expenses. Banks acting as authorised dealers under FEMA report every such remittance to the income tax department under Rule 114E. That data appears in your AIS.

For AY 2026-27, two things matter. First, the TCS regime that was tightened in October 2023 is now fully baked in. If you remit Rs. 10 lakh for foreign stock investment, the bank collects 20% TCS, i.e. Rs. 60,000 (on the amount above Rs. 7 lakh). This Rs. 60,000 is credited to your PAN and adjustable against your final tax liability. Second, any foreign asset purchased with that remittance, even a single share of Apple, must be disclosed in Schedule FA of your ITR. AIS gives the department a complete picture of what you remitted, why, and what you bought. This blog explains how to read each AIS row and how to file your ITR clean.

What AIS captures under foreign remittance

SFT-013 outward remittance

Each LRS remittance shows with date, amount in INR and foreign currency, purpose code, beneficiary country, and authorised dealer name. There is no threshold; even a Rs. 50,000 remittance for foreign tuition shows up.

TCS collected

The TCS amount under Section 206C(1G) appears in both AIS and Form 26AS Part B. The rate is 20% for most LRS purposes, 5% for education funded by loan, and 5% for medical or education abroad above Rs. 7 lakh.

Foreign tour package

A foreign tour package purchased through an Indian operator above Rs. 50,000 attracts TCS under Section 206C(1G). This shows in AIS as a separate entry.

Inward remittance

Inward foreign remittances received are also captured, especially when received through banking channels under purpose codes like family maintenance or gift.

TCS rates and refund mechanism

TCS structure for LRS

For remittances aggregating above Rs. 7 lakh per FY per individual under LRS, TCS rates from 1 October 2023 are 20% generally, 0.5% for education funded by loan, 5% for education or medical not funded by loan, and 5% for foreign tour packages above Rs. 7 lakh.

Below Rs. 7 lakh threshold

No TCS applies on the first Rs. 7 lakh of LRS remittances in a financial year, other than for foreign tour packages which attract TCS from the first rupee.

TCS as tax credit

The TCS collected is shown in Form 26AS Part B against your PAN. You claim it as a credit in your ITR like any other prepaid tax. If your final tax liability is lower than TCS collected, you get a refund.

Quarterly deposit

Banks deposit collected TCS to the government within seven days of the next month and report quarterly through Form 27EQ.

Schedule FA disclosure

What needs to be disclosed

Schedule FA of ITR-2 and ITR-3 requires disclosure of foreign bank accounts, foreign equity and debt, foreign mutual funds, foreign immovable property, foreign trusts, foreign cash value insurance, and any other foreign asset.

Reporting period

Reporting is on a calendar year basis, not financial year, due to alignment with foreign country reporting cycles. For AY 2026-27, you disclose foreign assets held during calendar year 2025.

What to enter

For each asset, enter country, account or asset description, peak balance during the year, value at year-end, total income from the asset, and amount of income offered in ITR.

A real example

Rahul, 36, Rs. 28L CTC, Pune, made foreign remittances in FY 2025-26 for his US stock portfolio.

1. He remitted USD 14,000 (approximately Rs. 11,76,000) to his US brokerage in three tranches: Rs. 5,00,000 on 15 April 2025, Rs. 4,00,000 on 10 September 2025, and Rs. 2,76,000 on 12 January 2026.
2. The bank applied 20% TCS on the portion above Rs. 7 lakh. The first Rs. 5 lakh was below threshold, no TCS. The second tranche took cumulative to Rs. 9 lakh, so TCS of 20% on Rs. 2 lakh = Rs. 40,000. The third tranche of Rs. 2,76,000 attracted 20% TCS of Rs. 55,200.
3. Total TCS collected was Rs. 95,200. This shows in Form 26AS Part B and AIS under SFT-013.
4. He bought Apple, Microsoft, and Google shares with the remitted amount. Year-end value as on 31 December 2025 was approximately Rs. 13,40,000. No dividends received during the year.
5. He files ITR-2 in August 2026. Schedule FA discloses each US stock with peak value, year-end value, and zero income. TCS credit of Rs. 95,200 is claimed in his prepaid tax schedule.
6. His final tax liability is Rs. 1,80,000 against TDS of Rs. 1,52,000 and TCS of Rs. 95,200. Net refund due is Rs. 67,200. CPC processes the return in five weeks and refund is credited.

What to do this week

1. List every outward foreign remittance you made during FY 2025-26 with date, amount, and purpose code.
2. Pull AIS and match against the Foreign Remittance section under SFT-013.
3. Pull Form 26AS Part B to see TCS collected and check it matches your bank's TCS certificate.
4. If you bought any foreign asset with the remittance, prepare Schedule FA disclosure for ITR-2 or ITR-3.
5. Run the 6-step assessment at https://myfinancial.in to see your old-vs-new regime delta, unused deductions, and insurance gap in under 10 minutes.

FAQ

Can I file ITR-1 if I have LRS remittance?

If you have made any foreign remittance and bought a foreign asset, you cannot file ITR-1. You must file ITR-2 or ITR-3, since Schedule FA is mandatory and is not available in ITR-1.

Is TCS refundable?

Yes. TCS is a prepaid tax credit. If your final tax liability is less than total TDS plus TCS, the difference is refunded.

What if my remittance was for foreign education?

TCS rate is 0.5% if funded by an education loan from a specified institution. Otherwise 5% above Rs. 7 lakh threshold for education and medical purposes.

Do I have to disclose ESOPs from foreign employers?

Yes. Foreign company ESOPs vested or exercised are foreign assets and go in Schedule FA. The ESOP perquisite is also taxable in your salary.

What happens if I do not disclose a foreign asset?

Section 43 of the Black Money Act, 2015 imposes a penalty of Rs. 10 lakh per year of non-disclosure, plus tax at 30% on the unreported foreign income. Prosecution can also apply.

Does sending money to my child abroad count?

Yes. A remittance to your child studying or living abroad is reportable under LRS as gift or maintenance, with the applicable TCS.

Can I take credit of foreign tax paid in India?

Yes, under Section 90 or 91 read with the relevant DTAA, foreign tax paid on income that is also taxable in India can be claimed as foreign tax credit using Form 67 filed before the ITR.

Sources

• Section 206C(1G) on TCS for LRS remittances: https://incometaxindia.gov.in/
• RBI Liberalised Remittance Scheme rules: https://rbi.org.in/
• AIS user guide on foreign remittances: https://www.incometax.gov.in/iec/foportal/help/annual-information-statement
• Schedule FA filing instructions on ITR-2 and ITR-3: https://www.incometax.gov.in/
• Black Money Act, 2015: https://incometaxindia.gov.in/

This is general information, not personalised advice. For your situation, consult a Certified Financial Planner.