TCS Rates Table 2026: Every Purpose, Every Threshold, One Reference
TL;DR
- Education funded by an 80E loan: 0.5% on amount above Rs. 10 lakhs.
- Education or medical self-funded: 5% on amount above Rs. 7 lakhs.
- Overseas tour programme package: 5% up to Rs. 10 lakhs, 20% above.
- All other LRS remittances: 20% on amount above Rs. 10 lakhs.
- Tax Collected at Source is a recoverable credit, claimable in your ITR under Schedule TCS.
What this means in plain terms
The Finance Act 2023 reshaped TCS for foreign remittances, and the rates that apply during FY 2025-26 (AY 2026-27) are now stable enough to be tabulated cleanly. Every authorised dealer bank, tour operator, and CA office uses some version of this table when collecting or advising on TCS.
The intent behind multi-tiered rates is differential treatment by purpose. Education and medical remittances are taxed lightly. Tourism is taxed heavily because of higher discretionary spending. Investment, gift, and maintenance fall in the "other" bucket, which is the highest.
The consolidated TCS table
By purpose, threshold, and rate
Education via Section 80E loan: Nil up to Rs. 10 lakhs; 0.5% above Rs. 10 lakhs.
Education self-funded: Nil up to Rs. 7 lakhs; 5% above Rs. 7 lakhs.
Medical treatment abroad: Nil up to Rs. 7 lakhs; 5% above Rs. 7 lakhs.
Overseas tour programme package: 5% up to Rs. 10 lakhs; 20% above Rs. 10 lakhs.
Any other LRS remittance (gift, maintenance, investment, deposit, etc.): Nil up to Rs. 10 lakhs; 20% above Rs. 10 lakhs.
Sale of overseas tour package by Indian seller (non-LRS, separate provision): 5% from first rupee; 20% above Rs. 10 lakhs (in practice, treated similarly).
Who collects
Authorised dealer banks under FEMA collect TCS on LRS remittances. Indian tour operators registered with the income tax department collect TCS on overseas tour packages.
How thresholds aggregate
The Rs. 7 lakhs threshold applies to self-funded education and medical, separately. The Rs. 10 lakhs threshold applies to education (with 80E loan), tour packages, and "other" LRS purposes, separately for each purpose category. You cannot mix thresholds across categories.
Practical examples by purpose
Self-funded education
You remit Rs. 18 lakhs for your child's tuition in Australia from personal savings. TCS = 5% of (18 lakhs minus 7 lakhs) = Rs. 55,000.
Education with Section 80E loan
Same Rs. 18 lakhs, but disbursed directly by SBI from an education loan. TCS = 0.5% of (18 lakhs minus 10 lakhs) = Rs. 4,000. Savings vs self-funded: Rs. 51,000 plus the unlimited Section 80E interest deduction.
Medical treatment abroad
You remit Rs. 15 lakhs to a US hospital for your mother's surgery. TCS = 5% of (15 lakhs minus 7 lakhs) = Rs. 40,000.
Overseas tour package
You buy a Rs. 12 lakhs tour package from MakeMyTrip. TCS = 5% on Rs. 10 lakhs + 20% on Rs. 2 lakhs = Rs. 50,000 + Rs. 40,000 = Rs. 90,000.
Foreign equity investment
You remit Rs. 25 lakhs to fund a Charles Schwab account. TCS = 20% of (25 lakhs minus 10 lakhs) = Rs. 3 lakhs.
Gift to NRI relative
You remit Rs. 20 lakhs to your son in Singapore as a gift. TCS = 20% of (20 lakhs minus 10 lakhs) = Rs. 2 lakhs.
Common edge cases
Multiple purposes in one year
If you remit Rs. 8 lakhs for tour package (TCS at 5% on full amount = Rs. 40,000), Rs. 12 lakhs for foreign investment (TCS at 20% on Rs. 2 lakhs above Rs. 10 lakhs threshold = Rs. 40,000), and Rs. 5 lakhs for self-funded education (no TCS, below Rs. 7 lakhs), the total TCS is Rs. 80,000. Each purpose is tracked separately for threshold purposes.
Currency fluctuation impact
Banks convert USD to INR at the prevailing rate on the date of remittance. The thresholds are in INR. So a USD remittance close to the threshold may inadvertently cross it if INR depreciates between two transactions.
NRI converting back
If an NRI becomes resident mid-year, LRS and TCS apply for remittances made in their resident period only. The NRE/NRO repatriations from the non-resident period are not LRS.
Aggregation across collectors
For the same purpose, the Rs. 10 lakhs (or Rs. 7 lakhs) threshold is aggregated across all collectors (banks and operators) using your PAN. Each individual collector may not see the aggregate; reconciliation happens at ITR time.
A real example
Karthik, 29, Rs. 16L CTC, Kochi, plans the following in FY 2025-26:
Step 1: Honeymoon to Maldives in November 2025 via Yatra: Rs. 4 lakhs. TCS at 5% on the full amount = Rs. 20,000.
Step 2: Forex card load for a separate Europe trip in March 2026 (DIY booking): Rs. 3 lakhs, treated as LRS for "travel" purpose under "other". Since cumulative LRS for "other" is below Rs. 10 lakhs, no TCS.
Step 3: Investment in international ETFs via his Indian broker: Rs. 12 lakhs in February 2026. LRS for capital account, "other" purpose. TCS = 20% on (12 lakhs minus 10 lakhs, since cumulative other crossed during this transaction) = wait, let me recompute. Cumulative "other" LRS = Rs. 3 lakhs (March forex) + Rs. 12 lakhs (Feb invest) = Rs. 15 lakhs. Of this, Rs. 5 lakhs is above the Rs. 10 lakhs threshold. TCS = 20% on Rs. 5 lakhs = Rs. 1 lakh. The bank applies this on the Feb transaction since that is what crossed the threshold.
Step 4: Total TCS: Rs. 20,000 (Maldives) + Rs. 1,00,000 (investments) = Rs. 1,20,000.
Step 5: Karthik's total tax for AY 2026-27 = Rs. 1.4 lakhs. Employer TDS = Rs. 30,000. He claims Rs. 1.2 lakhs TCS in Schedule TCS. Net result: refund of Rs. 10,000 with interest under Section 244A.
What to do this week
- Pin this table somewhere accessible (your password manager, a note app). Most TCS questions are answered by knowing the right row.
- Before any large foreign remittance, identify the purpose code and check which row of the table applies.
- If you can route an education or medical remittance through a Section 80E loan, the TCS saving is 10x lower.
- Keep Form 27D, Form A2, and bank confirmations for every transaction in one folder per financial year.
- 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
What if my purpose does not fit neatly into the table?
Most LRS remittances fall under "other" purpose by default. Donations, maintenance of relatives, capital investment, gifts, deposits, real estate purchase abroad all fall here. The 20% rate above Rs. 10 lakhs applies.
Do TCS rates change mid-year?
The Finance Act notifies changes typically effective from 1st April or 1st October. The rates listed in this article reflect FY 2025-26 as effective. Always check the latest Finance Act or CBDT circular for the most current rates.
Are debit card transactions abroad subject to TCS?
International debit card transactions for personal travel use are generally outside the TCS regime if they are spot transactions for goods and services consumed abroad. Withdrawals from your bank account abroad via debit may attract TCS if classified as LRS by the bank. Check with your bank.
Is there a TCS exemption for senior citizens or first-time remitters?
No. The thresholds and rates apply uniformly. There is no age-based concession or first-time exemption under Section 206C(1G).
Can I split a payment to multiple beneficiaries to reduce TCS?
Splitting payments to different beneficiaries does not reduce TCS. The threshold tracks your aggregate outflow as the buyer, not the recipient. Splitting across two financial years (Mar/Apr) does help.
How is TCS calculated on a partial reimbursement scenario?
If you initially self-fund and then take a loan, the original self-funded portion already attracted 5% TCS. The new loan-funded portion attracts 0.5% on its own threshold. There is no retroactive recharacterisation.
Are bitcoin or crypto remittances subject to TCS?
Crypto transfers via wallet addresses do not flow through LRS and are not directly subject to TCS under 206C(1G). However, crypto VDA transactions have their own TDS regime (1% under Section 194S). Cross-border crypto compliance is still evolving.
Sources
- Income Tax Act, Section 206C(1G): https://incometaxindia.gov.in/
- Finance Act 2023 amendments and 2024 clarifications: https://incometaxindia.gov.in/
- CBDT Circular on tour package TCS: https://incometaxindia.gov.in/
- RBI LRS Master Direction: https://www.rbi.org.in/
- AIS reporting guidelines, incometax.gov.in: https://www.incometax.gov.in/
This is general information, not personalised advice. For your situation, consult a Certified Financial Planner.
