Money Abroad Tax IndiaTax on money sent abroad from India
Work out the tax collected at source on a Liberalised Remittance Scheme payment or an overseas tour package under section 394 of the Income-tax Act, 2025, read on 13 November 2026. Nothing you type leaves your device.
Worked examples
- Sending ₹15 lakh abroad in a year for travel or a gift after nothing earlier: the part above ₹10 lakh is ₹5 lakh, and the tax at 20% is ₹1,00,000.
- Sending ₹15 lakh for education: the same ₹5 lakh at 5% is ₹25,000.
- Buying a ₹12 lakh overseas tour package: 5% of ₹10 lakh and 20% of ₹2 lakh, ₹90,000.
Common questions
How much tax is collected when I send money abroad?
Under section 394 of the Income-tax Act, 2025, the authorised dealer collects 5% of the part above ₹10 lakh in the year if the purpose is education or medical treatment and 20% for any other purpose, as this site reads the table. An education loan from a financial institution is exempt.
Is the tax collected on the first ₹10 lakh?
No collection applies to remittances up to ₹10 lakh in the year under serial 7. For an overseas tour package, serial 8 collects 5% on amounts up to ₹10 lakh and 20% above.
Can the rate be lower?
Section 395(3) lets the buyer apply to the Assessing Officer for a certificate for collection of tax at a lower rate, if total income justifies it.
Source
- The Income-tax Act, 2025, as published in the Gazette of India Extraordinary: section 394 (tax collection at source, Table serials 7 and 8 and sub-sections (4) and (5)) and section 395(3) (certificate for collection at a lower rate). The enacted text was read on 13 November 2026.
Rules read on 13 November 2026 from the Income-tax Act, 2025. The Act may have been amended since it was enacted. This site is independent, not connected with the Income Tax Department or any bank, and gives arithmetic, not tax advice or foreign exchange advice. Your bank collects the tax: ask it.