What TCS is
Tax collected at source (TCS) is tax your bank, forex provider or tour operator collects from you when you send money abroad or buy a foreign tour. It's deposited against your PAN and shows up in your Form 26AS (Form 168 from tax year 2026-27). When you file your return, it counts as tax you've already paid.
The rates from 1 April 2026
| What you pay for | TCS |
|---|---|
| Forex card loads and money sent abroad (travel, gifts, investments), first ₹10 lakh in the year | Nil |
| The same, above ₹10 lakh in the year | 20% of the amount above ₹10 lakh |
| Education or medical treatment abroad, above ₹10 lakh in the year | 2% (was 5%) |
| Overseas tour package from a tour operator | 2% of the whole amount, from the first rupee (was 5% and 20%) |
The ₹10 lakh limit is per person for the financial year, across everything you send under the Liberalised Remittance Scheme (LRS), the RBI scheme for sending money abroad.
Two examples
- A family trip on a tour package: a ₹3 lakh package carries TCS of ₹6,000 (2%). Earlier, this was ₹15,000 at 5%.
- A big year abroad on forex cards: you've already loaded ₹10 lakh this year and load ₹2 lakh more. TCS is ₹40,000 (20% of ₹2 lakh). You get it back when you file.
What about credit cards abroad?
In 2023, the Ministry of Finance said spending on an international credit card while you're overseas isn't counted under LRS, so no TCS is collected on it. Banks still report high card spending to the tax department, and your bank adds its own currency markup, so compare the full cost before you choose a card.
How to get TCS back
- Check that the TCS appears against your PAN in Form 26AS or your AIS on the e-filing portal.
- When you file your return, the TCS is included in the taxes you've already paid.
- If your TDS from salary already covers your tax, the TCS comes back to you as a refund.
TCS only comes back if you file a return. If it's large, money is tied up until your refund arrives, so plan big loads or remittances with that in mind.
Common questions
What is the TCS on forex card loads in 2026-27?
Nil on the first ₹10 lakh you send abroad in the financial year, then 20% of the amount above ₹10 lakh. For education or medical treatment the rate above ₹10 lakh is 2%.
What is the TCS on overseas tour packages from 1 April 2026?
2% of the whole package amount, from the first rupee. It was 5% up to ₹10 lakh and 20% above.
Is TCS charged on international credit card spending?
No. The Ministry of Finance said in 2023 that international credit card spending while overseas is not counted under LRS, so no TCS is collected.
Can I get TCS back?
Yes. TCS is tax paid in your name. Claim it in your income tax return; if your salary TDS already covers your tax, it comes back as a refund.
Two ways to sort this
Do it yourself
- Before a big load or transfer, add up what you've sent abroad this financial year. TCS at 20% starts only above ₹10 lakh.
- Book foreign holidays through a tour package only if the 2% TCS suits you. It's collected from the first rupee.
- Keep the TCS certificate or invoice from your bank, forex provider or tour operator.
- Check that the TCS appears in Form 26AS or your AIS on the e-filing portal.
- File your return and claim it. If your salary TDS already covers your tax, it comes back as a refund.
Let an expert do it
We match every TCS entry to your AIS, claim it in your return and chase the refund if it's delayed.
The first chat is freeWork it out for yourself
- Income tax: old vs new: Which regime leaves more in your account.
TCS you paid is set against your tax for the year. See what you owe.
Open the income tax calculatorSources
- Memorandum explaining the Finance Bill, 2026: rationalisation of TCS rates, Union Budget 2026-27, Ministry of Finance
- Budget speech 2026-27, paragraphs 103 and 104, Union Budget 2026-27, Ministry of Finance
- Important changes w.r.t. LRS and TCS (28 June 2023), Press Information Bureau, Ministry of Finance
This guide explains the rules in general. For your own situation, .