Harun Raaj & Associates · Tools

LRS + TCS Calculator

Purpose of remittanceAmount being remitted this transaction (₹)Aggregate LRS remitted in FY 2025-26 so far (₹, across all purposes — not including this transaction)

Result

TCS to be collected: ₹0

Effective TCS rate: 0.0%

Amount above threshold₹0

Rate applied0.5%

Prior amount already above₹0

Category note: Only if funded by loan from financial institution under s.2(c) of Negotiable Instruments Act or any commercial bank.

Statutory section: s.206C(1G)(b) proviso — reduced rate for education via financial institution loan

TCS collected is credited against the taxpayer's total tax liability for that FY. Claimed in Schedule TCS of ITR. If TCS > tax liability, it results in a refund.

Rates above (20% for other LRS, 0.5%/5% for education/medical) are effective 01-Oct-2023 per FA 2023. Before 01-Oct-2023, the rate for non-tour LRS was 5% — this is now 20%.

Worked example

₹5L for education (own funds) in April + ₹4L for investment in June = total ₹9L. Second remittance of ₹4L: first ₹2L brings aggregate to ₹7L at 5%; remaining ₹2L at 20%. Tax = ₹2L × 5% + ₹2L × 20% = ₹10,000 + ₹40,000 = ₹50,000.

VERIFY

Whether the ₹7L threshold resets every FY or is tracked across years — it resets every FY (Apr 1 to Mar 31). Confirm how AD banks track the aggregate when a person uses multiple banks for LRS.

VERIFY

FA 2023 increased TCS on most LRS remittances from 5% to 20% (effective 01-Oct-2023). This is a major change many blogs have not updated. Also: TCS does NOT reduce income — it is a tax credit, not a deduction. Tool must clearly state that TCS collected ≠ final tax payable; it is advance tax that gets credited in ITR.

Annual LRS limit: USD 250,000 per financial year per person (resident individual)