TCS on Outward Remittances LRS

TCS on Outward Remittances LRS
The revised TCS rates w.e.f. 1st Apr, 2025, as advised by CBDT are as under:
a) Remittance for the purpose of any Education (S0305, S1107)

	After Income Tax Bill 2025	From 01.04.2025		From 01-04-2026
Nature	Threshold	TCS Rate		TCS Rate
		Valid PAN	Inoperative PAN	Valid PAN	Inoperative PAN
If the amount being remitted out is a loan obtained from any financial institution as defined in section 80E	NIL	NIL	NIL	NIL	NIL
Remittance is not out of loan from a financial institution	Up to INR 10.00 lakh	Nil	Nil	Nil	Nil
	Above INR10.00 Lakh	5%	10%	2%	5%

b).Remittance for the purpose of any Medical Treatment (S0304,S1108)

	After Income Tax Bill 2025	From 01.04.2025		From 01-04-2026
Nature	Threshold	TCS		TCS
		Valid PAN	Inoperative PAN	Valid PAN	Inoperative PAN
Remittance is for Medical Treatment	Up to INR 10.00 Lakh	nil	nil	nil	nil
	Above INR 10.00 Lakh	5%	10%	2%	5%

 

c). Sale of Overseas tour package* ( S0301, S0303 & S0306)

	After Income Tax Bill 2025	From 01.04.2025		From 01-04-2026
Nature	Threshold	TCS		TCS
		Valid PAN	Inoperative PAN	Valid PAN	Inoperative PAN
Remittance is for the purchase of a tour package	Up to INR 10.00 Lakh	5%	10%	2%	5%

*Overseas tour package means any tour package which offers visit to a country/ countries or territory/ territories outside India and includes expenses for travel/ hotel stay or boarding/ lodging or any other expenditure of similar nature or in relation thereto.
d). Any Other Remittance (for Bonds, Shares, Real Estate, Gifts etc.) (S0023,S0005, S0001, S0002, S0003, S0004, S0021, S0022, S1302, S1303, S1301, S1107, S1307, S0011, S0603)

	After Income Tax Bill 2025	From 01.04.2025		From 01-04-2026
Nature	Threshold	TCS	Inoperative PAN	TCS	Inoperative PAN
Remittance is for any other purpose	Up to INR 10.00 lakh	Nil	Nil	Nil	Nil
	Above INR 10.00 Lakh	20%	20%	20%	20%

 

The remitter with ‘Inoperative PAN’ is one who has been allotted Permanent Account Number (PAN) as on 01/07/2017 and have not linked their Aadhaar and PAN.
In view of clarifications shared vide FAQ (copy attached) viz., LRS remittance limit is qua remitter and is independent of the remitting institution.
Further, as TCS is applicable on all LRS remittances, the fund transfer from resident account to account of Non- Resident Indian within India (to NRO) account comes under purview of TCS calculation.
Additionally, the remittances effected through International Debit Card will be treated as outward remittances, as per extant FEMA norms and TCS will be deducted as per applicable guidelines from CBDT.