At a glance
- •Uniform ₹10L per-FY basic exemption
- •Investments above ₹10L: 20% TCS
- •Education loans: 0.5% above ₹10L
- •Tour packages: 5% up to ₹10L, 20% beyond
- •TCS fully creditable / refundable via ITR
Earlier the TCS regime under Section 206C(1G) applied different thresholds and rates to different LRS categories — education and medical funded by loans were lower-rated, while travel and other purposes attracted 20% above the threshold. From 1 October 2026, the basic ₹10 lakh per-person per-FY exemption applies uniformly, with TCS as follows:
• Education funded by an Indian education loan: 0% up to ₹10L, 0.5% above • Education/medical (self-funded): 0% up to ₹10L, 5% above • Investments and other remittances: 0% up to ₹10L, 20% above • Overseas tour packages: 5% up to ₹10L, 20% above
The TCS is fully creditable against your income-tax liability or refundable. Banks/AD-1 dealers must update LRS templates by 30 September.
Who is impacted
Source: RBI A.P. (DIR Series) Circular 8