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TCS on Foreign Remittance: Section 206C(1G)

TCS @5% on foreign remittance (LRS). When to collect, deposit, and implications.

GetYourCA Team
2 April 2026·Updated 2 April 20261 min read12.5K views
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TCS on Foreign Remittance Section 206C(1G)#

When Applicable?#

  • RBI permitted remittance
  • Under LRS (Liberalized Remittance Scheme)
  • Purpose: Travel, education, investment

TCS Rate#

PurposeTCS Rate
Education (up to ₹20 lakh)0.5%
Education (>₹20 lakh)5%
Travel5%
Investment5%

Process#

  1. Bank collects TCS
  2. Deposits to government
  3. Gives certificate
  4. Adjust in ITR

Exemptions#

  • U/s 197 certificate
  • Remittance to own account
  • Specific purposes

Points to Remember#

  • Cannot claim as expense
  • Adjust in final tax return
  • Carry forward unused TCS

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Disclaimer

We have taken utmost care to research and write this article for your information. However, tax laws are complex and subject to frequent changes. This article is for general guidance only and should not be considered professional advice. Individual circumstances vary significantly — what works for one person may not apply to another.

Before making any tax-related decisions, we strongly recommend consulting with a qualified Chartered Accountant or tax professional who can assess your specific situation. We do not accept any liability for decisions made based on this information.

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