Compute Tax Collected at Source (TCS) on overseas tour packages, foreign education, medical treatments, and general LRS remittances under Section 206C(1G).
Except for overseas tour packages (where 5% applies up to ₹7L), zero TCS is levied on education, medical, and general LRS remittances up to the aggregate annual threshold of ₹7,00,000 per financial year.
TCS is 100% adjustable against your income tax liability or refundable in your annual ITR.
Under the Liberalised Remittance Scheme (LRS) of the Reserve Bank of India, resident individuals can remit up to USD 250,000 per financial year for permissible current or capital account transactions. Section 206C(1G) governs Tax Collected at Source on these foreign payments.
For purchasing overseas holiday tour packages (including travel, hotel, and sightseeing):
• Up to ₹7 Lakhs: 5% TCS.
• Exceeding ₹7 Lakhs: 20% TCS on the amount exceeding ₹7 Lakhs.
• Education financed by loan (Sec 80E): 0.5% TCS on amount exceeding ₹7 Lakhs.
• Education (Own funds) & Medical Treatment: 5% TCS on amount exceeding ₹7 Lakhs.
• Remittances below ₹7 Lakhs for education and medical attract 0% TCS.
| Remittance Category | Amount Up to ₹7 Lakhs | Amount Exceeding ₹7 Lakhs |
|---|---|---|
| Overseas Tour Program Package | 5% TCS | 20% TCS |
| Education Loan (Section 80E) | Nil (0%) | 0.50% TCS |
| Education (Own) / Medical Treatment | Nil (0%) | 5.00% TCS |
| Other Remittances (Gifts / Foreign Stocks) | Nil (0%) | 20.00% TCS |
International credit card spending while traveling abroad is currently exempted from the LRS limit and TCS until further notification by the Ministry of Finance.
The authorized dealer bank issues Form 27D. The TCS appears in your AIS / Form 26AS, which can be claimed as a direct refund or tax credit when filing your ITR.
Authorized dealer banks use RBI's real-time API framework to track pan-India aggregate remittances made by a taxpayer across all banks during the financial year.