This page sets out the limits and collection rates that apply when residents send money abroad, and the tax deducted on interest paid to non-resident Indians. Each row gives the figure, who it applies to and from when, and a link to the official source. Figures change with each Finance Act, notification and quarterly review, so check the date and the source before you rely on a number. The explanations sit in the Academy lessons linked at the end of the page.
LRS and TCS
| Item | Figure | Who and when it applies | Source |
|---|---|---|---|
| Liberalised Remittance Scheme (LRS) limit | US$250,000 per financial year (April to March) | Each resident individual, including minors, for permitted current and capital account purposes combined | RBI: LRS FAQs; RBI Master Direction on LRS |
| TCS on LRS remittances for education or medical treatment | 2% | Where the person's LRS remittances in the tax year exceed ₹10 lakh in aggregate; from 1 April 2026 (5% before that) | Income-tax Act 2025, section 394(1), Table item 7(a) |
| TCS on LRS remittances for other purposes (for example investment or gifts) | 20% | Where the person's LRS remittances in the tax year exceed ₹10 lakh in aggregate; tax year 2026–27 | Section 394(1), Table item 7(b) |
| Education funded by a loan from a financial institution | No TCS collected by the bank on the remitted loan amount | Remittances for education paid out of a loan from a financial institution; tax year 2026–27 | Section 394(4)(b) |
| TCS on an overseas tour programme package | 2%, collected by the seller; this entry has no ₹10 lakh threshold | Buyers of overseas tour packages; from 1 April 2026. The bank does not collect again on an amount on which the seller has collected | Section 394(1), Table item 8, and 394(4)(a) |
TCS is not an extra tax. It is collected in advance and can be set against your tax for the year or claimed back through your return, but the money is locked up until then.
NRO interest for non-residents
| Item | Figure | Who and when it applies | Source |
|---|---|---|---|
| TDS on interest paid to a non-resident individual (for example NRO account interest) | 30%, plus surcharge where applicable and 4% cess; no threshold | Non-resident individuals; tax year 2026–27. TDS is a credit against final tax, which depends on total Indian income and any treaty claim | Income-tax Act 2025, section 393(2), Table Sl. No. 17; Finance Act 2026, First Schedule, Part II |
How to use these figures
How the ₹10 lakh threshold is counted across purposes and banks, what the locked-up TCS really costs you, and how a treaty can reduce tax for a non-resident are explained in these lessons:
- LRS and TCS: the remittance limit, the collection rules and worked examples.
- NRE, NRO and FCNR accounts: how each account is taxed and repatriated.
- DTAA, TRC and filing: claiming treaty rates and getting excess TDS back.
Last checked against sources: 23 October 2026. This is the date the figures above were compared with the official sources linked in each row. It is not a professional review of anyone's tax or investment position.