LRS Limit Tracker
Liberalised Remittance Scheme — track your USD 2,50,000 annual limit.
Compute Tax Collected at Source (TCS) on Liberalised Remittance Scheme (LRS) transfers under Section 206C(1G) of the Income Tax Act, 1961 (Section 394 from Tax Year 2026-27). LRS allows resident Indians to remit up to USD 250,000 per individual per financial year for permitted purposes.
The ₹10 lakh TCS threshold is PAN-based, not bank-based. Sum across all authorised dealers.
TCS Computation
Remittance amount₹ 0
Already used in FY₹ 0
Cumulative total₹ 0
TCS threshold₹ 10,00,000
TCS rate0%
Amount above threshold₹ 0
TCS Payable₹ 0
Net remitted abroad₹ 0
Refundable: TCS is treated as advance tax. Adjustable against your overall income tax liability while filing ITR (reflected in Form 26AS / AIS, becoming Form 168 from TY 2026-27).
LRS Purpose Codes & Current TCS Rates (FY 2026-27)
| Purpose | Code | TCS-free up to | TCS Rate | Note |
|---|---|---|---|---|
| Education - funded via approved education loan (Sec 80E / Sec 129) | S0305 | No limit | 0% | NO TCS regardless of amount, if loan from recognised institution. |
| Education - self-funded | S0305 | ₹ 10 L | 2% | 2% on amount above Rs 10 lakh (reduced from 5% in Budget 2026). |
| Medical treatment abroad | S0304 | ₹ 10 L | 2% | 2% on amount above Rs 10 lakh (reduced from 5% in Budget 2026). |
| Overseas tour packages (booked through travel operator) | S0306 | No threshold | 2% | FLAT 2% on every remittance, NO threshold (reduced from 5%/20% slabs). |
| Maintenance of close relatives abroad | S1301 | ₹ 10 L | 20% | 20% on amount above Rs 10 lakh in FY. |
| Gifts / donations to person resident outside India | S1302 | ₹ 10 L | 20% | 20% on amount above Rs 10 lakh in FY. |
| Investment in foreign equity / debt / mutual funds | S0001 | ₹ 10 L | 20% | 20% on amount above Rs 10 lakh in FY. |
| Investment in foreign real estate / immovable property | S0005 | ₹ 10 L | 20% | 20% on amount above Rs 10 lakh. Use correct purpose code S0005. |
| Deposit in foreign bank account / fixed deposit | S0701 | ₹ 10 L | 20% | 20% on amount above Rs 10 lakh. RBI proposed June 2025 restrictions on lock-in foreign deposits. |
| Private travel / personal foreign travel (forex card load) | S0301 | ₹ 10 L | 20% | 20% on amount above Rs 10 lakh. Credit card spending abroad is OUTSIDE LRS (no TCS). |
| Emigration | S0303 | ₹ 10 L | 20% | 20% on amount above Rs 10 lakh. |
| Employment abroad | S0302 | ₹ 10 L | 20% | 20% on amount above Rs 10 lakh. |
What you CANNOT do under LRS
- Remittance to Bhutan / Nepal (use separate framework)
- Remittance to countries identified by FATF as non-cooperative (FATF list)
- Remittance to individuals / entities identified by RBI as significant terror financing risks
- Trading in foreign exchange abroad (margin / margin call / leveraged FX)
- Purchase of lottery tickets, sweep stakes, banned magazines, prohibited goods
- Remittance of any income or capital gain from a foreign currency account held abroad to a third party
- Trading on foreign stock exchanges with margin payments (only delivery-based investing allowed)
Important clarifications:
- The USD 250,000 ceiling is the OVERALL annual cap (covers all current + capital account transactions combined). Unused portion expires on 31 March - cannot carry forward.
- Credit card spending abroad is OUTSIDE LRS (per 2023 clarification still operative). Forex card load IS within LRS.
- Family pooling is allowed - each family member has independent USD 250,000 limit; can be combined for joint property purchases (all remitters must be co-owners).
- PAN is mandatory for all LRS remittances. Form A2 declaration required for each transaction.
- Minor's LRS: limit applies separately; transactions signed by legal guardian.
Important note: This tool provides an indicative output only. It does not factor in every special provision, surcharge, exception, or recent notification. Verify with the firm before acting on any computation.
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