TCS on Foreign Remittances – New Rules from October 2025

The Finance Act 2023 had announced a staggered increase in TCS on foreign remittances under the Liberalised Remittance Scheme (LRS).

From 1 October 2025, remittances above ₹7 lakh for purposes other than education or medical treatment will attract 20% TCS (up from 5%).

For education financed by a loan, the rate remains 0.5%; for others, it's 5%. Medical remittances remain 5%.

This means higher upfront cash outflow for travellers and investors, although the TCS can be claimed as a credit in the ITR.