# FEMA Remittance Planner

> Resident individuals can remit up to USD 250,000 a financial year abroad under the RBI's Liberalised Remittance Scheme for permitted purposes — investments, gifts, education, travel and maintenance of relatives. Banks collect TCS on remittances above ₹10 lakh a year: 20% for most purposes, 5% for education and medical treatment, and nil for education funded by a loan from a financial institution. TCS is an advance tax you can claim back in your ITR.

Interactive calculator: https://www.industax.com/calculators/fema-remittance

- **LRS limit per person:** USD 250,000 a year
- **TCS threshold:** ₹10 lakh a year
- **TCS above threshold:** 20% (most purposes)

## TCS rates on LRS remittances (from 1 April 2025)

| Purpose | Up to ₹10 lakh a year | Above ₹10 lakh |
| --- | --- | --- |
| Education funded by a loan from a financial institution | Nil | Nil |
| Education (self-funded) and medical treatment | Nil | 5% |
| Overseas tour packages | 5% | 20% |
| Investments, gifts, maintenance and other purposes | Nil | 20% |

## What LRS doesn't allow

- Margin trading and forex trading on overseas platforms
- Lottery, gambling and betting
- Remittances to countries flagged by FATF as non-cooperative
- Buying foreign currency convertible bonds issued by Indian companies abroad

## Getting TCS back

TCS appears in your Form 26AS/AIS and is credited against your total tax when you file. If your tax liability is lower, the excess is refunded. Salaried employees can also ask their employer to account for TCS when deducting TDS.

## Worked example: investing in US stocks

1. Remittances for investing abroad: ₹16 lakh in the year.
2. First ₹10 lakh: nil TCS. Next ₹6 lakh: 20% TCS = ₹1,20,000.

**Result:** ₹1.2 lakh TCS, fully creditable against your income tax for the year.

## FAQs

### Is the ₹10 lakh TCS threshold per bank or per person?

Per person across all banks for the financial year. Banks rely on your declaration, so remittances through several banks are added together.

### Can I gift money to my child studying abroad under LRS?

Yes, as maintenance or gift within USD 250,000. Remittances for education can attract the lower 5% TCS above ₹10 lakh, or nil if funded by an education loan.

### Do I need to report foreign investments made under LRS in my ITR?

Yes. Foreign shares, accounts and funds bought through LRS must be reported in Schedule FA each year while you are resident and ordinarily resident.

## Official sources

- RBI — Liberalised Remittance Scheme: https://www.rbi.org.in/
- incometaxindia.gov.in: https://www.incometaxindia.gov.in/

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Canonical page: https://www.industax.com/calculators/fema-remittance
Publisher: Indus Tax — CA-led tax and compliance firm (https://www.industax.com). Contact: info@industax.com, 9059139258.
This is general information, not advice for your specific facts.