{"id":25560,"date":"2026-01-25T22:43:23","date_gmt":"2026-01-25T17:13:23","guid":{"rendered":"https:\/\/blog.razorpay.in\/blog\/?p=25560"},"modified":"2026-03-24T14:25:25","modified_gmt":"2026-03-24T08:55:25","slug":"tax-on-outward-remittance-from-india-tcs-gst-rates","status":"publish","type":"post","link":"https:\/\/razorpay.com\/blog\/tax-on-outward-remittance-from-india-tcs-gst-rates\/","title":{"rendered":"Tax on Outward Remittance from India (2026): TCS Rates, GST &#038; Exemptions"},"content":{"rendered":"<p><span style=\"font-weight: 400;\">Sending money from India now involves more than bank fees. With April 2025 updates to the Liberalised Remittance Scheme (LRS), understanding tax obligations is essential for individuals and businesses.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Two levies apply to foreign remittances: Tax Collected at Source (TCS) and Goods and Services Tax (GST). From April 1, 2025, the TCS exemption threshold increased from \u20b97 lakh to \u20b910 lakh for most categories. While these rules primarily affect individuals under LRS, businesses must comply with Form 15CA and 15CB requirements.<\/span><\/p>\n<div style=\"border-left: 4px solid #0073aa; background: #f0f8ff; padding: 15px; margin: 20px 0; border-radius: 5px;\">\n<h2 style=\"color: #0073aa; font-size: 18px; margin: 0 0 8px 0; display: inline-block;\">Key Takeaways<\/h2>\n<ul style=\"display: inline-block; margin: 0 0 0 10px; padding-left: 18px; vertical-align: top;\">\n<li>Effective April 1, 2025, the <a href=\"https:\/\/razorpay.com\/learn\/business-banking\/tax-collected-at-source\/\">TCS<\/a> exemption threshold for foreign remittances increased to \u20b910 lakh per financial year, easing smaller transfers.<\/li>\n<li>For amounts above \u20b910 lakh, a 20% TCS rate generally applies, except for categories like education and medical treatment, which have lower rates.<\/li>\n<li>TCS is an <a href=\"https:\/\/razorpay.com\/learn\/business-banking\/how-to-pay-advance-tax-online\/\">advance tax<\/a>; amounts collected appear in Form 26AS and can be claimed as a refund or credit when filing your Income Tax Return.<\/li>\n<li>GST at 18% applies only to currency conversion fees and bank charges, while TCS is calculated on the principal remittance exceeding the exemption limit.<\/li>\n<\/ul>\n<\/div>\n<h2><b>What is Tax on Outward Remittance?<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">Two distinct costs affect your foreign transfers: TCS (Income Tax) and GST (Service Tax). The term &#8216;Service Tax&#8217; is outdated; it was replaced by GST in 2017, which now applies to bank service fees. Understanding this distinction helps avoid confusion when calculating total remittance costs.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">TCS functions as an advance tax payment, not an additional cost. Banks collect it during remittance processing, and you can adjust it against your total income tax liability. Meanwhile, GST applies only to service components, such as currency conversion margins and processing fees.<\/span><\/p>\n<h3><b>Tax Collected at Source (TCS):<\/b><\/h3>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">TCS is collected by your authorised dealer (bank) at the time of remittance under LRS<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">It applies to the principal amount remitted above specific thresholds set by the government<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">This tax links directly to your PAN and appears automatically in Form 26AS<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The collected amount becomes a tax credit you can claim when filing returns<\/span><\/li>\n<\/ul>\n<h3><b>Goods and Services Tax (GST):<\/b><\/h3>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">GST applies only to currency conversion charges and processing fees, not the total remitted amount.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The standard GST rate is 18% on all service fees charged by banks<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Banks calculate GST using slabs: up to \u20b91,00,000 use 1% of the transaction value as the service value; \u20b91,00,001 to \u20b910,00,000 add \u20b91,000 plus 0.5% of the amount above \u20b91,00,000.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">For amounts above \u20b910,00,000, banks charge \u20b95,500 plus 0.1% above \u20b910,00,000.<\/span><\/li>\n<\/ul>\n<h2><b>Updated TCS Rates on Foreign Remittance (Effective April 2025)<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">The distinction between TCS and GST becomes clearer when examining the revised tax structure. From April 1, 2025, the government implemented significant changes to TCS rates, raising the exemption threshold to \u20b910 lakh. These rates vary based on your remittance purpose code.<\/span><\/p>\n<table>\n<tbody>\n<tr>\n<td><b>Purpose<\/b><\/td>\n<td><b>TCS Rate (Below \u20b910 Lakh)<\/b><\/td>\n<td><b>TCS Rate (Above \u20b910 Lakh)<\/b><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Education (Loan-funded)<\/span><\/td>\n<td><span style=\"font-weight: 400;\">0% (NIL)<\/span><\/td>\n<td><span style=\"font-weight: 400;\">0% (NIL)<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Education (Self-funded)<\/span><\/td>\n<td><span style=\"font-weight: 400;\">0% (NIL)<\/span><\/td>\n<td><span style=\"font-weight: 400;\">5%<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Medical Treatment<\/span><\/td>\n<td><span style=\"font-weight: 400;\">0% (NIL)<\/span><\/td>\n<td><span style=\"font-weight: 400;\">5%<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Overseas Tour Packages<\/span><\/td>\n<td><span style=\"font-weight: 400;\">5%<\/span><\/td>\n<td><span style=\"font-weight: 400;\">20%<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Other Purposes<\/span><\/td>\n<td><span style=\"font-weight: 400;\">0% (NIL)<\/span><\/td>\n<td><span style=\"font-weight: 400;\">20%<\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<h3><b>Remittance for Education (Loan vs. Self-Funded):<\/b><\/h3>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Education funded by loans from specified financial institutions attracts 0% TCS, regardless of the amount<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Banks require your education loan sanction letter referencing Section 80E for this exemption<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Self-funded education enjoys NIL TCS up to \u20b910 lakh, then 5% on amounts exceeding this threshold<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Keep loan documentation ready when visiting your bank to ensure a correct TCS application<\/span><\/li>\n<\/ul>\n<h3><b>Remittance for Medical Treatment:<\/b><\/h3>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Medical remittances remain tax-free up to \u20b910 lakh per financial year<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Amounts exceeding \u20b910 lakh attract a 5% TCS rate<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Banks may request medical invoices or doctor prescriptions for verification<\/span><\/li>\n<\/ul>\n<h3><b>Overseas Tour Packages:<\/b><\/h3>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Tour packages face higher tax rates compared to other remittance categories<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The first \u20b910 lakh attracts 5% TCS, significantly higher than the NIL rate for other purposes<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Amounts exceeding \u20b910 lakh jump to a steep 20% TCS rate per financial year<\/span><\/li>\n<\/ul>\n<h3><b>Other Purposes (Investments, Gifts, Maintenance):<\/b><\/h3>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">This category covers foreign stock purchases, family maintenance, and gift remittances<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">NIL TCS applies up to the \u20b910 lakh threshold<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">A flat 20% TCS rate applies on amounts exceeding the \u20b910 lakh threshold<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Purpose codes matter: ensure correct selection to avoid higher tax rates<\/span><\/li>\n<\/ul>\n<p style=\"text-align: center;\"><a style=\"background-color: #1a73e8; color: #ffffff; font-weight: 800; padding: 7px 15px; border-radius: 7px; font-size: 16px; text-decoration: none; display: inline-block; white-space: nowrap;\" href=\"https:\/\/razorpay.com\/international-payment-gateway-india\/?utm_source=blog&amp;utm_medium=referral&amp;utm_campaign=internationalpayments\">Explore Razorpay&#8217;s Global Payment Solutions<\/a><\/p>\n<h2><b>How to Calculate TCS and GST on Your Remittance?<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">With multiple tax rates and thresholds established, calculating your actual remittance cost requires careful computation. Let&#8217;s walk through a practical example to clarify the process.<\/span><\/p>\n<p><b>Scenario: Sending \u20b915,00,000 for family maintenance<\/b><\/p>\n<p><b>Step 1:<\/b><span style=\"font-weight: 400;\"> Calculate GST on bank fees<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Bank service value (per slab): \u20b95,500 + 0.01% of (\u20b915,00,000 &#8211; \u20b910,00,000) = \u20b96,000<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">GST at 18% on service value = \u20b91,080[3]<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Processing fee: \u20b91,000 + GST \u20b9180 = \u20b91,180<\/span><\/li>\n<\/ul>\n<p><b>Step 2:<\/b><span style=\"font-weight: 400;\"> Calculate TCS on the amount above the threshold<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Taxable amount = \u20b915,00,000 &#8211; \u20b910,00,000 = \u20b95,00,000<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">TCS at 20% = \u20b91,00,000<\/span><\/li>\n<\/ul>\n<p><b>Step 3:<\/b><span style=\"font-weight: 400;\"> Calculate total payable<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Principal amount: \u20b915,00,000<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Bank fees + GST: \u20b97,180 + \u20b91,180 = \u20b98,360<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">TCS: \u20b91,00,000<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Total amount needed: \u20b916,08,360<\/b><\/li>\n<\/ul>\n<div style=\"border-left: 4px solid #0073aa; background: #f0f8ff; padding: 15px; margin: 20px 0; border-radius: 5px;\">\n<h2 style=\"color: #0073aa; font-size: 18px; margin: 0;\">Did You Know?<\/h2>\n<p style=\"margin-top: 10px;\"><i><span style=\"font-weight: 400;\">The Reserve Bank of India is reviewing LRS rules and may restrict placing resident funds into offshore interest-bearing time deposits to curb passive wealth shifting.<\/span><\/i><span style=\"font-size: 19px; background-color: #ffffff;\">\u00a0<\/span><\/p>\n<\/div>\n<h2><b>Exemptions and Ways to Save on Remittance Tax<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">Understanding TCS rules and thresholds allows legitimate planning to reduce liability. Smart structuring of remittances, while remaining legal, optimizes tax payments without evading them.<\/span><\/p>\n<h3><b>Leveraging the \u20b910 Lakh Threshold:<\/b><\/h3>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The \u20b910 lakh limit applies per financial year (April to March) per individual, not per transaction<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Consider timing transfers across two financial years by splitting between March and April<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Each family member maintains their own LRS limit and TCS threshold<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Joint accounts allow flexibility: choose the remitter with available threshold space<\/span><\/li>\n<\/ul>\n<div style=\"border-left: 4px solid #0073aa; background: #f0f8ff; padding: 15px; margin: 20px 0; border-radius: 5px;\">\n<p style=\"color: #0073aa; font-size: 18px; margin: 0;\"><strong><span style=\"color: #0073aa;\"><span style=\"font-size: 18px;\">Pro Tip: <\/span><\/span><\/strong><span style=\"color: rgba(0,0,0,0.74); font-size: 19px; font-weight: 400;\">Plan large remittances around the financial year change. A \u20b920 lakh transfer split equally between March and April attracts no TCS, whereas the same amount in one go attracts \u20b92 lakh in TCS.<\/span><span style=\"font-size: 19px; background-color: #ffffff; color: rgba(0, 0, 0, 0.74);\">\u00a0<\/span><\/p>\n<\/div>\n<h3><b>International Credit Card Spends:<\/b><\/h3>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">International credit card spending while physically overseas is currently excluded from LRS limits<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">That means no TCS when swiping your card during foreign travel<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">However, purchasing tour packages from India using cards still attracts TCS<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Monitor regulatory changes as the RBI reviews these exemptions periodically<\/span><\/li>\n<\/ul>\n<h3><b>Claiming TCS as Income Tax Refund:<\/b><\/h3>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">TCS represents a tax credit, not a permanent cost to you<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Verify TCS entries in Form 26AS or Annual Information Statement (AIS)<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Adjust the collected TCS against your total tax payable when filing ITR<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Claim a full refund if your tax liability falls below the TCS already collected<\/span><\/li>\n<\/ul>\n<h2><b>Tax on Outward Remittance for Businesses vs. Individuals<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">The threshold benefits and TCS rates discussed apply primarily to personal remittances. Businesses sending money abroad face an entirely different compliance framework. Understanding this distinction prevents costly compliance errors and penalties.<\/span><\/p>\n<h3><b>LRS Rules for Individuals:<\/b><\/h3>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Individuals remit under LRS with an annual limit of USD 250,000<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">TCS serves as the primary tax mechanism for personal transfers<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Purpose codes (Education, Travel, Gift) determine applicable rates<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Banks handle TCS collection automatically based on the declared purpose<\/span><\/li>\n<\/ul>\n<h3><b>Form 15CA and 15CB Compliance for Businesses:<\/b><\/h3>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Businesses don&#8217;t pay LRS TCS on their foreign payments<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Instead, they must deduct TDS (Tax Deducted at Source) if payments are taxable in India under Section 195<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Form 15CA (self-declaration) filing remains mandatory for all foreign payments<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Form 15CB (CA certificate) becomes necessary when payments have tax implications<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Trade payments for imports may skip 15CB but still require 15CA submission<\/span><\/li>\n<\/ul>\n<h2><b>Offset Global Business Costs with Razorpay MoneySaver Export Account<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">Managing taxes and costs for outward remittances is important, but businesses can also reduce forex expenses by optimising receipts. The Razorpay MoneySaver Export Account helps exporters and freelancers save up to 50% on international transfer fees compared to traditional SWIFT methods by utilizing a <a href=\"https:\/\/razorpay.com\/accept-international-payments\/bank-transfers\/\">multi-currency account<\/a> to receive funds locally.<\/span><\/p>\n<p>It also simplifies compliance by providing automated electronic <a href=\"https:\/\/razorpay.com\/blog\/firc-certificate\/\">FIRCs<\/a> for each transaction, ensuring adherence to RBI regulations without manual paperwork.<\/p>\n<div style=\"background: #f5faff; border-radius: 14px; padding: 30px; text-align: center; margin: 42px 0; box-shadow: 0 8px 20px rgba(26,115,232,0.08);\">\n<h2 style=\"color: #1a73e8; font-size: 24px; font-weight: bold; margin-bottom: 12px;\"><strong>Offset Forex Costs, Stay Compliant with Razorpay<\/strong><\/h2>\n<p style=\"color: #444; font-size: 16px; max-width: 720px; margin: 0 auto 18px; line-height: 1.6;\"><strong>Save up to 50% on receipts versus SWIFT, with automated eFIRC for RBI compliance\u2014no<br \/>\nbank paperwork needed again.<\/strong><\/p>\n<p><a style=\"display: inline-block; background: #1a73e8; color: #ffffff; padding: 14px 26px; font-size: 16px; font-weight: bold; border-radius: 10px; text-decoration: none;\" href=\"https:\/\/razorpay.com\/accept-international-payments\/bank-transfers\/?utm_source=blog&amp;amp;utm_medium=referral&amp;amp;utm_campaign=internationalpayments%22%3E%3Cem%3E%3Cstrong%3ERazorpay%E2%80%99s&quot;\">Explore Razorpay\u2019s MoneySaver Export Account<\/a><span style=\"font-size: 19px; background-color: #ffffff;\">\u00a0<\/span><\/p>\n<\/div>\n<h2><b>Conclusion<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">The April 2025 update brought relief by increasing the exemption threshold to \u20b910 lakh, but high-value transfers still face 20% TCS. Remember that GST applies only to service fees while TCS targets the principal amount above thresholds.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Choose purpose codes carefully to access lower rates for education or medical needs. Check Form 26AS at year-end to claim your TCS as a refund or credit. For businesses managing tax on outward remittance from India, exploring digital solutions like an <a href=\"https:\/\/razorpay.com\/international-payment-gateway-india\/\">international payment gateway<\/a> or the Razorpay MoneySaver Export Account can automate compliance while reducing forex costs.<\/span><\/p>\n<h2><b>FAQs<\/b><\/h2>\n<h3><b>1. What are the new TCS rates for foreign remittance effective April 2025?<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">Starting April 1, 2025, a 20% TCS rate applies to remittances exceeding \u20b910 lakh for purposes like investments and tourism. Education and medical payments above this threshold generally attract a lower TCS rate of 5%.<\/span><\/p>\n<h3><b>2. Is GST charged on the total amount sent abroad?<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">No, GST is not applied to the principal amount remitted. It only applies at 18% to currency conversion charges and processing fees levied by banks or financial institutions.<\/span><\/p>\n<h3><b>3. How can I claim a refund for the TCS deducted from my remittance?<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">A refund can be claimed by filing your Income Tax Return. The TCS deducted appears as a tax credit in Form 26AS, which can be adjusted against your total tax liability or claimed as a refund.<\/span><\/p>\n<h3><b>4. Does using an international credit card abroad attract TCS?<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">No, international credit card spends made while physically outside India are excluded from LRS limits, so TCS does not apply. However, booking tour packages from India using credit cards attracts TCS.<\/span><\/p>\n<h3><b>5. Is the \u20b910 lakh TCS exemption limit per transaction or per year?<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">The \u20b910 lakh exemption threshold is cumulative for the entire financial year (April 1 to March 31) per individual, not per transaction.<\/span><\/p>\n<h3><b>6. Do businesses need to pay TCS on outward remittances?<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">No, TCS under LRS applies primarily to individuals. Businesses making foreign payments must comply with TDS rules under Section 195 and file Forms 15CA and 15CB.<\/span><\/p>\n<h3><b>7. Can I split my transfer across two years to avoid TCS?<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">Yes, since the LRS limit and TCS threshold reset every financial year (April 1), remittances can be planned across March and April to utilise exemption limits for both years.<\/span><br \/>\n<script type=\"application\/ld+json\">\n{\n  \"@context\": \"https:\/\/schema.org\",\n  \"@type\": \"FAQPage\",\n  \"mainEntity\": [\n    {\n      \"@type\": \"Question\",\n      \"name\": \"What are the new TCS rates for foreign remittance effective April 2025?\",\n      \"acceptedAnswer\": {\n        \"@type\": \"Answer\",\n        \"text\": \"Starting April 1, 2025, a 20% TCS rate applies to remittances exceeding \u20b910 lakh for purposes like investments and tourism. 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However, booking tour packages from India using credit cards attracts TCS.\"\n      }\n    },\n    {\n      \"@type\": \"Question\",\n      \"name\": \"Is the \u20b910 lakh TCS exemption limit per transaction or per year?\",\n      \"acceptedAnswer\": {\n        \"@type\": \"Answer\",\n        \"text\": \"The \u20b910 lakh exemption threshold is cumulative for the entire financial year (April 1 to March 31) per individual, not per transaction.\"\n      }\n    },\n    {\n      \"@type\": \"Question\",\n      \"name\": \"Do businesses need to pay TCS on outward remittances?\",\n      \"acceptedAnswer\": {\n        \"@type\": \"Answer\",\n        \"text\": \"No, TCS under LRS applies primarily to individuals. Businesses making foreign payments must comply with TDS rules under Section 195 and file Forms 15CA and 15CB.\"\n      }\n    },\n    {\n      \"@type\": \"Question\",\n      \"name\": \"Can I split my transfer across two years to avoid TCS?\",\n      \"acceptedAnswer\": {\n        \"@type\": \"Answer\",\n        \"text\": \"Yes, since the LRS limit and TCS threshold reset every financial year (April 1), remittances can be planned across March and April to utilise exemption limits for both years.\"\n      }\n    }\n  ]\n}\n<\/script><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Sending money from India now involves more than bank fees. With April 2025 updates to the Liberalised Remittance Scheme (LRS), understanding tax obligations is essential for individuals and businesses. Two levies apply to foreign remittances: Tax Collected at Source (TCS) and Goods and Services Tax (GST). From April 1, 2025, the TCS exemption threshold increased<\/p>\n","protected":false},"author":86,"featured_media":26445,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"inline_featured_image":false,"footnotes":""},"categories":[1067],"tags":[],"class_list":{"0":"post-25560","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-cross-border"},"_links":{"self":[{"href":"https:\/\/razorpay.com\/blog\/wp-json\/wp\/v2\/posts\/25560","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/razorpay.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/razorpay.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/razorpay.com\/blog\/wp-json\/wp\/v2\/users\/86"}],"replies":[{"embeddable":true,"href":"https:\/\/razorpay.com\/blog\/wp-json\/wp\/v2\/comments?post=25560"}],"version-history":[{"count":7,"href":"https:\/\/razorpay.com\/blog\/wp-json\/wp\/v2\/posts\/25560\/revisions"}],"predecessor-version":[{"id":26446,"href":"https:\/\/razorpay.com\/blog\/wp-json\/wp\/v2\/posts\/25560\/revisions\/26446"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/razorpay.com\/blog\/wp-json\/wp\/v2\/media\/26445"}],"wp:attachment":[{"href":"https:\/\/razorpay.com\/blog\/wp-json\/wp\/v2\/media?parent=25560"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/razorpay.com\/blog\/wp-json\/wp\/v2\/categories?post=25560"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/razorpay.com\/blog\/wp-json\/wp\/v2\/tags?post=25560"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}