# Foreign Remittance under LRS & TCS

> Resident individuals can send up to USD 250,000 per financial year abroad under the Liberalised Remittance Scheme for travel, education, medical care, gifts, family maintenance and investment. TCS applies only above ₹10 lakh a year per person: from 1 April 2026, nil for loan-funded education, 2% for other education and medical remittances, 20% for other purposes, and 2% on overseas tour packages from the first rupee. TCS is credited against your income tax.

Practice: FEMA & RBI Compliance — https://www.industax.com/services/fema-rbi/

TCS isn't an extra tax — it shows in Form 26AS/AIS and reduces the tax payable in your return or is refunded. Salaried people can also ask their employer to account for it in monthly TDS. Planning remittances across family members and financial years keeps cash from being blocked.

LRS can't be used for margin trading, lottery, betting, or trading on unauthorised forex platforms, and remittances to countries flagged by FATF as non-cooperative are barred. Investment abroad — US stocks, foreign property, or ODI in an operating company — has its own reporting, including Schedule FA in your ITR.

## Key facts

| Item | Detail |
| --- | --- |
| LRS limit | USD 250,000 per financial year per resident individual |
| TCS threshold | ₹10 lakh per financial year, per PAN |
| Education / medical (not loan-funded) | 2% above ₹10 lakh (from 1 April 2026) |
| Loan-funded education | Nil |
| Other purposes | 20% above ₹10 lakh |
| Overseas tour packages | 2% from the first rupee |

## Who needs this

- Parents paying overseas tuition
- Residents investing in foreign stocks or property
- Families supporting relatives abroad
- Travellers buying overseas tour packages

## What's included

- Remittance and TCS planning
- Purpose-code and documentation guidance
- TCS credit in ITR or salary TDS
- Schedule FA reporting for foreign investments

## Documents

- PAN and Form A2
- Purpose documents (admission letter, invoice, investment details)
- TCS certificates

## Process

1. **Plan** — Amounts, payers and timing optimised for TCS.
2. **Remit** — Right purpose code and documents to the bank.
3. **Recover** — TCS claimed in your return.

## Also covers

- **Foreign remittance** — Outward remittances by residents for all permitted purposes.

## FAQs

### Is TCS charged on the first ₹10 lakh?

No, except on overseas tour packages. The ₹10 lakh threshold is per person per financial year across all banks.

### Can I get TCS back?

Yes, it's credited against your tax liability in the ITR, and any excess is refunded.

### Can I buy property abroad under LRS?

Yes, within the USD 250,000 annual limit, and it must be disclosed in Schedule FA of your ITR.

## Official sources

- RBI — Master Directions (Foreign Investment, Overseas Investment, LRS): https://www.rbi.org.in/Scripts/BS_ViewMasterDirections.aspx
- Income Tax e-Filing portal: https://www.incometax.gov.in/

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This is general information, not advice for your specific facts.