RBI LRS Limit and TCS Rules Explained
RBI LRS सीमा और TCS नियम समझाए गए
The Liberalised Remittance Scheme (LRS) lets resident Indians send money abroad for travel, education, investment and gifts. Since 2023–24, TCS (Tax Collected at Source) applies to LRS remittances, and the thresholds matter a lot. Here's the 2026 picture.
The LRS Annual Limit
LRS वार्षिक सीमा
Every resident Indian can remit up to USD 250,000 per financial year under LRS for permitted purposes, including:
- Private travel abroad.
- Education (tuition + living expenses).
- Medical treatment.
- Investments abroad (stocks, property).
- Gifts and donations.
- Maintenance of relatives abroad.
Remittances above USD 250,000 require prior RBI approval.
TCS on LRS Remittances (2026)
LRS रेमिटेंस पर TCS (2026)
| Purpose | Threshold | TCS rate |
|---|---|---|
| Most remittances (travel, gifts, investment) | Above ₹2.5 lakh/year | 20% |
| Education (loan-funded) | Above ₹7 lakh/year | 0.5% |
| Education (self-funded) | Above ₹7 lakh/year | 5% |
| Medical treatment | Above ₹7 lakh/year | 5% |
TCS is collected by the bank or money changer at the time of remittance and can be claimed as a credit against your income tax when filing returns.
Examples of How TCS Works
TCS कैसे काम करता है इसके उदाहरण
- ₹1 lakh family travel remittance: below ₹2.5 lakh — no TCS.
- ₹5 lakh travel remittance: TCS at 20% on the full ₹5 lakh = ₹1,00,000 collected.
- ₹10 lakh education remittance (self-funded): TCS at 5% on the full ₹10 lakh = ₹50,000 (0.5% if education loan-backed).
Claim the TCS as a credit against your total tax liability in your income tax return.
LRS and NRI Bank Accounts
LRS और NRI बैंक खाते
LRS applies only to resident individuals. Funds in an NRE account are not subject to LRS limits for repatriation — they can be transferred abroad freely. If you convert to NRI status, your NRE/NRO accounts work under FEMA rules, not LRS.
Frequently Asked Questions (FAQs)
अक्सर पूछे जाने वाले प्रश्न (FAQs)
Q1. What is the LRS limit for foreign remittances?
प्र1. विदेशी रेमिटेंस के लिए LRS सीमा क्या है?
USD 250,000 per financial year per resident individual. Above this, prior RBI permission is required.
Q2. At what amount does TCS apply on LRS?
प्र2. LRS पर TCS किस राशि पर लागू होता है?
Above ₹2.5 lakh per year for most purposes, and above ₹7 lakh per year for education and medical treatment.
Q3. What is the TCS rate on foreign travel?
प्र3. विदेश यात्रा पर TCS दर क्या है?
20% on the amount above ₹2.5 lakh per year for most travel remittances.
Q4. Can I get the TCS back?
प्र4. क्या मैं TCS वापस पा सकता हूं?
Yes — TCS is adjustable against your total income tax liability when you file your return. Low-income individuals may claim a refund.
Q5. Does LRS apply to NRE/NRO accounts?
प्र5. क्या LRS NRE/NRO खातों पर लागू होता है?
No. LRS applies to resident individuals. NRE account repatriation is governed by FEMA and has no LRS limit.
Sources: RBI LRS master directions; Income Tax TCS rules, 2026. Rules can change — confirm with your bank or CA.