TCS on Outward Remittances LRS

TCS on Outward Remittances LRS
The revised TCS rates w.e.f. 1st Apr, 2025, as advised by CBDT are as under:
a) Remittance for the purpose of any Education (S0305, S1107)

Nature	After Income Tax Bill 2025	Rate (From 01.04.2025)
	Threshold	Valid PAN	Inoperative PAN
If the amount being remitted out is a loan obtained from any financial institution as defined in section 80E		NIL	NIL	NIL
Remittance is not out of loan from a financial institution	Up to INR 10 lacs	NIL	NIL
	Above INR 10 lacs	5%	10%

b).Remittance for the purpose of any Medical Treatment (S0304,S1108)

Nature	Threshold	Rate (From 01.04.2025)
	After Income Tax Bill 2025	Valid PAN	Inoperative PAN
Remittance is for Medical Treatment	Up to INR 10 lacs	NIL	NIL
	Above INR 10 lacs	5%	10%

c). Sale of Overseas tour package* ( S0301, S0303 & S0306)

Nature	Threshold	Rate (From 01.04.2025)
	After Income Tax Bill 2025	Valid PAN	Inoperative PAN
Remittance is for the purchase of a tour package	Up to INR 10 lacs	5%	10%
	Above INR 10 lacs	20%	20%

*Overseas tour package means any tour package which offers visit to a country/ countries or territory/ territories outside India and includes expenses for travel/ hotel stay or boarding/ lodging or any other expenditure of similar nature or in relation thereto.
d). Any Other Remittance (for Bonds, Shares, Real Estate, Gifts etc.) (S0023,S0005, S0001, S0002, S0003, S0004, S0021, S0022, S1302, S1303, S1301, S1107, S1307, S0011, S0603)

Nature	Threshold	Rate (From 01.04.2025)
	After Income Tax Bill 2025	Valid PAN	Inoperative PAN
Remittance is for any other purpose	Up to INR 10 lacs	5%	20%
	Above INR 10 lacs	20%	20%

The remitter with ‘Inoperative PAN’ is one who has been allotted Permanent Account Number (PAN) as on 01/07/2017 and have not linked their Aadhaar and PAN.
In view of clarifications shared vide FAQ (copy attached) viz., LRS remittance limit is qua remitter and is independent of the remitting institution.
Further, as TCS is applicable on all LRS remittances, the fund transfer from resident account to account of Non- Resident Indian within India (to NRO) account comes under purview of TCS calculation.
Additionally, the remittances effected through International Debit Card will be treated as outward remittances, as per extant FEMA norms and TCS will be deducted as per applicable guidelines from CBDT.