TCS threshold is ₹10,00,000 per financial year per individual (PAN-level).
Cumulative this FY,
Amount below ₹10L threshold,
Amount above ₹10L threshold,
Applicable TCS rate,
TCS payable₹0
TCS is adjustable against your final income tax liability, or refundable through your ITR.
TCS rates
Rate by purpose.
Under Section 206C(1G) of the Income Tax Act, an AD bank collects TCS on outward remittances above the threshold. The rate depends on what the money is being sent for.
| Purpose | Up to ₹10,00,000 / FY | Above ₹10,00,000 / FY |
|---|---|---|
| Education , funded by an education loan | 0% | 0% |
| Education , self-funded | 0% | 5% |
| Medical treatment | 0% | 5% |
| Overseas tour package | 5% | 20% |
| Other (gifts, maintenance, investment, visit) | 0% | 20% |
| Business travel , company-sponsored | 0% | 0% |
Tour packages are special: TCS applies from the very first rupee at 5%, with no threshold benefit. Above ₹10 lakh in the financial year, the rate steps up to 20%.
How TCS works
Advance tax, not a new cost.
- The AD bank collects TCS at the time of remittance and deposits it with the government by the 7th of the following month.
- The amount appears in your Form 26AS and can be adjusted against your income tax liability , or refunded , when you file your ITR.
- The ₹10 lakh threshold is per PAN, per financial year, aggregated across all AD banks.
- For overseas tour packages, there is no threshold , TCS applies from rupee one.
- Customers are required to self-declare cumulative remittances under LRS, since no central monitoring is automatic.
Notes
Indicative only. Final TCS is calculated by the AD bank at the time of settlement based on your self-declaration and Form 60 / PAN records. See the related GST calculator for GST charged on the same transaction.