Money Abroad Tax IndiaTCS on foreign remittance
Section 394(1), Table serial 7 of the Income-tax Act, 2025 (read on 13 November 2026) makes the authorised dealer (your bank) collect tax on a remittance under the Liberalised Remittance Scheme "of an amount or aggregate of the amounts exceeding ten lakh rupees": 5% for education or medical treatment and 20% for other purposes. The Act prints the rates in the next column without the words "on the excess"; this site applies them to the part of the year’s total above ₹10 lakh, This is this site’s reading of the table, not a sentence of the Act (serial 8 does say it for its 20% band). Check with your bank.
Tax by amount sent in a year (nothing sent earlier)
| Sent in the year | Education or medical | Other purpose |
|---|---|---|
| ₹10,00,000 | ₹0 | ₹0 |
| ₹15,00,000 | ₹25,000 | ₹1,00,000 |
| ₹25,00,000 | ₹75,000 | ₹3,00,000 |
| ₹50,00,000 | ₹2,00,000 | ₹8,00,000 |
| ₹1,00,00,000 | ₹4,50,000 | ₹18,00,000 |
The total counts every remittance in the financial year: the tax applies to the part of each new remittance that takes the total above ₹10 lakh.
Common questions
What counts as the Liberalised Remittance Scheme?
The Act’s table speaks of a "remittance under the Liberalised Remittance Scheme" and does not define the scheme; the limits on how much an individual may remit come from foreign exchange rules, which were not read for this site.
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.