LRS Limit and TCS Rules: Sending Money Out of India in 2026
Stay updated on the $250,000 LRS limit and the 20% Tax Collected at Source (TCS) rules for foreign remittances.
Understanding LRS Limits & TCS
Under the Liberalised Remittance Scheme (LRS), resident Indians can send up to USD 250,000 overseas per financial year. Remittances above ₹7 Lakhs attract 20% TCS (Tax Collected at Source), which can be claimed back in your annual Income Tax Return.
Educational & Medical Exceptions
Lower TCS rates of 0.5% (for foreign education paid via loan) or 5% apply to medical and educational remittances. Maintain documentation details to claim lower tax rates during banking operations.
CA Amit Sharma
Verified Advisory LeadAmit is a Chartered Accountant (ICAI membership #409214) and FEMA compliance advisor with over 8 years of experience advising technology startups, digital marketing agencies, and remote professionals on zero-rated GST exports, DTAA declarations, and RBI inward remittance audits.
Disclaimer: The information provided above is for educational purposes only and does not constitute formal legal or financial advice. Please verify details using official circulars issued by the Central Board of Indirect Taxes & Customs (CBIC) and RBI.