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What TCS is
Tax collected at source (TCS) is collected by the dealer when your LRS spending in a financial year goes above a threshold. It is not an extra cost in the end: it is credited against your income tax.
Threshold and rate
In our current settings, TCS applies above ₹10,00,000 of LRS spending per traveller per financial year, at 20% of the amount above the threshold. These values are updated in our settings when the rules change.
Why we ask for your earlier LRS use
The threshold covers all your LRS spending in the year: cards abroad, transfers and other forex purchases. You declare your earlier use when ordering, so TCS is worked out correctly.
Worked example
If you have already used ₹9,50,000 of LRS this year and now buy ₹1,00,000 of currency, ₹50,000 is above the threshold. TCS = 20% × ₹50,000.
If your earlier use plus this order stays below the threshold, TCS is zero and the quote shows ₹0.
Claiming it back
TCS appears in your tax statement (Form 26AS / AIS) against your PAN and can be adjusted in your income tax return. Ask your tax adviser how it applies to you.
General information, not tax or legal advice. Limits shown come from our current settings and can change with the rules.