Updated for FY 2026–27

TCS on
Foreign
Exchange
in 2026

Complete guide to Tax Collected at Source on outward remittance, overseas education, medical treatment, tour packages and investments under LRS.

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TCS Calculator

Instant estimate for FY 2026–27

LRS Utilisation 0% of ₹7L limit
Total PAN Amount ₹0
Taxable Amount ₹0
TCS Rate 0%
TCS Payable ₹0
Total Payable ₹0
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Send money abroad under LRS with purpose-code, TCS and document support.

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Understanding TCS

What is TCS on Foreign Exchange?

TCS (Tax Collected at Source) is collected by authorised dealers, banks and forex companies when a resident individual remits money abroad under the Liberalised Remittance Scheme (LRS).

Advance Tax Collection

TCS is not a Fire Forex service charge. It is collected against your PAN and may be adjusted while filing your Income Tax Return.

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Applies on LRS

Covers education, medical treatment, travel, maintenance, gifts, investments and other foreign remittance purposes under RBI's LRS.

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PAN-Based Tracking

Your yearly LRS utilisation is tracked across banks and forex providers for cumulative threshold calculation against your PAN.

2026 Rates

TCS Applicability on Foreign Remittance

Category-wise TCS structure under LRS with clear thresholds and applicable rates for FY 2026–27.

Purpose / Category Up to ₹10 Lakh Above ₹10 Lakh Important Notes
🎓 Overseas Education NIL 2% on excess
NIL if funded via education loan
University fee, student living expenses, GIC / blocked account and education-related payments.
🏥 Medical Treatment Abroad NIL 2% on excess Hospital payment, treatment cost and related medical remittance abroad.
✈️ Overseas Tour Package Flat 2% — no ₹10L threshold Applies to international tour packages through travel operators.
👨‍👩‍👧 Maintenance of Relatives NIL 20% on excess Family support and maintenance remittance under LRS.
🎁 Gift Remittance NIL 20% on excess When money is sent abroad as a gift under LRS.
📄 Visa / Emigration / Consultancy NIL 20% on excess Visa processing, emigration, overseas consultancy and advisory fee.
📈 Investment Remittance NIL 20% on excess Foreign stocks, overseas property, capital transfers and investment purposes.
⚠️ TCS is collected against PAN and may be adjusted while filing your Income Tax Return. Final applicability depends on purpose code, documents, PAN status, LRS utilisation and latest government rules.
How It Works

How TCS is Calculated

Simple 4-step method to estimate TCS on foreign exchange and outward remittance.

1

Check Purpose

Education, medical, tour and other LRS purposes have different TCS rates from 0% to 20%.

2

Add Previous LRS

Previous remittance in the same financial year is added for cumulative threshold calculation.

3

Apply ₹10 Lakh Rule

For most LRS categories, TCS applies only on the amount exceeding ₹10 lakh per financial year.

4

Collect TCS

TCS is collected at the time of debit or payment and reported against your PAN.

Examples

TCS Calculation Examples by Category

Understand the real impact of TCS with practical, number-based examples.

📚 Overseas Education

Amount₹15,00,000
Threshold₹10,00,000
Taxable Amount₹5,00,000
TCS @ 2%₹10,000

🎓 Education Loan Funded

Amount₹20,00,000
Funded via specified education loan✅ Yes
Taxable Amount₹0
TCS₹0

🏥 Medical Treatment

Amount₹14,00,000
Taxable Amount₹4,00,000
TCS @ 2%₹8,000

✈️ Overseas Tour Package

Package Amount₹6,00,000
NoteFlat 2%, no threshold
TCS @ 2%₹12,000

👨‍👩‍👧 Maintenance Abroad

Amount₹12,00,000
Taxable Amount₹2,00,000
TCS @ 20%₹40,000

🎁 Gift Remittance

Amount₹18,00,000
Taxable Amount₹8,00,000
TCS @ 20%₹1,60,000

📄 Visa / Consultancy

Amount₹11,00,000
Taxable Amount₹1,00,000
TCS @ 20%₹20,000

📈 Investment Remittance

Amount₹25,00,000
Taxable Amount₹15,00,000
TCS @ 20%₹3,00,000
FAQ

Frequently Asked Questions

Is TCS a Fire Forex charge?
No. TCS is collected as per Income Tax rules and reported against your PAN. It is not a service fee charged by Fire Forex.
Can TCS be claimed as a refund?
Yes, TCS may be adjusted or claimed as a refund while filing your Income Tax Return, subject to your overall tax liability for the year.
Is TCS applicable on forex card loading?
Yes, if forex card loading falls under an LRS purpose, applicable TCS rules may apply based on cumulative PAN utilisation.
Is TCS calculated per transaction or annually?
TCS is generally checked on PAN-based cumulative LRS utilisation during the financial year, not per individual transaction.
Does overseas tour package have a ₹10 lakh threshold?
No. Overseas tour packages are subject to a flat 2% TCS on the full amount, regardless of whether the amount crosses ₹10 lakh.

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