LRS Foreign Remittance TCS Calculator
Same remittance, wildly different TCS depending on purpose
LRS Foreign Remittance TCS Calculator
General purpose (travel, gifts, investment)
0
20% TCS above Rs 7L
Education (self-funded) or medical treatment
0
5% TCS above Rs 7L
Education funded via education loan
0
0% up to Rs 7L, then 0.5%
The Rs 7 lakh threshold
TCS under the Liberalised Remittance Scheme only kicks in above Rs 7 lakh in a financial year per remitter — below that, no TCS applies regardless of purpose.
TCS is not an extra cost, it's a deposit
TCS collected is fully creditable against your final income tax liability (or refundable if you have none) — the real cost is the cash-flow lock-up until you file your return and claim it back.
Education loans get the best rate
Remittances for education funded through a specified financial institution's loan get a concessional 0.5% TCS above Rs 7L — a fraction of the 20% general rate, making loan-routed remittances worth considering even if you could pay cash.
Rates reflect the LRS TCS structure as amended: 20% on general remittances (investment, gifts, travel packages) above Rs 7L, 5% on self-funded education or medical treatment above Rs 7L, and a concessional 0.5% on education funded via a loan from a specified financial institution, above Rs 7L (0% below). Rates and thresholds are set by the Finance Act and can change in any Budget — verify current rates before a large remittance. Not tax advice.
Frequently asked questions
Should I choose the old tax regime or the new one?
It depends on how many deductions and exemptions you actually claim (80C, HRA, home loan interest, and similar). If your eligible deductions are substantial, the old regime often works out cheaper; if you claim few or none, the new regime's lower slab rates usually win. Compare both using your real numbers rather than assuming -- this calculator does that comparison directly.Read more: Rent in the City, Buy Farmland, Pay No Tax: The Advice That Raises Your Tax Bill
What counts as a tax-saving investment?
Under the old regime, Section 80C covers instruments like PPF, ELSS mutual funds, EPF, life insurance premiums, and 5-year tax-saving FDs, up to the annual 80C cap. The new regime doesn't offer most of these deductions, which is the core trade-off between the two regimes.Read more: Tax Deferment Techniques in India: What the Wealthy Use and Nobody Teaches You
How is capital gains tax calculated on mutual funds/stocks?
It depends on the holding period and asset type. Equity held over 12 months is taxed as long-term capital gains (with an annual exemption threshold); held less than 12 months, it's short-term and taxed differently. Debt funds follow their own, separate rules. Always check the current thresholds, since these are periodically revised.Read more: A ULIP Is an Investment Fund Wearing an Insurance Costume — Here’s Every Charge
What is TDS and when does it apply?
TDS (Tax Deducted at Source) is income tax deducted upfront by whoever pays you -- an employer, a bank paying FD interest above a threshold, and similar -- and deposited with the tax department on your behalf. It's an advance payment toward your total tax liability, not an extra tax, and is adjusted when you file your return.Read more: Rent in the City, Buy Farmland, Pay No Tax: The Advice That Raises Your Tax Bill
Estimates only, not financial advice. See our Disclaimer.
