USD 250,000 — Annual LRS ceiling per resident individual
20% — TCS rate on most LRS remittances above ₹7 lakh
| Purpose | TCS Below ₹7 Lakh | TCS Above ₹7 Lakh | Notes |
|---|---|---|---|
| Education (education loan) | Nil | 0.5% | Loan must be from institution u/s 80E |
| Education (own funds) | Nil | 5% | Self-funded tuition, living costs abroad |
| Medical treatment abroad | Nil | 5% | For self or dependent |
| Overseas travel package | Nil | 20% | Tour packages sold by travel agents |
| Foreign stock/property investment | Nil | 20% | Includes ETFs, REITs, direct equity |
| Gifts to foreign recipients | Nil | 20% | Any currency gifted to NRIs or foreigners |
| Maintenance of relatives abroad | Nil | 20% | Includes NRI children, spouses |
| Provider | Exchange Rate Markup | Wire Fee | LRS Compliant | Approx. Speed |
|---|---|---|---|---|
| HDFC Bank (Forex) | 1.5–2.5% | ₹500–1,500 | Yes (direct AD bank) | 1–3 business days |
| ICICI Bank (Money2World) | 1.0–2.0% | ₹500–1,000 | Yes (direct AD bank) | 1–2 business days |
| Wise (via AD partner) | 0.4–0.6% | ₹150–400 | Yes (licensed MTO) | 1–2 business days |
| Instarem | 0.5–1.0% | ₹200–600 | Yes (licensed MTO) | 1–2 business days |
| SBI (Outward Remittance) | 1.5–3.0% | ₹1,000–2,000 | Yes (direct AD bank) | 2–4 business days |
₹7 lakh — Annual LRS threshold before TCS applies (per individual)
The LRS ceiling is USD 250,000 per resident individual per financial year (April 1 to March 31). This limit has been unchanged since 2015. It applies to the total of all outward remittances in the year across all purposes. Minors can also remit under LRS with their guardian as the applicant.
Yes. TCS is not a final tax — it is advance tax credit. The amount collected by your bank is deposited with the Income Tax Department under your PAN and appears in your Form 26AS and AIS. When you file your ITR, you claim it as a credit against your tax liability. If the TCS exceeds your tax due, the excess is refunded. You must file an ITR to claim the refund; TCS is not automatically returned.
It depends on how the education is funded. If you're remitting for education fees using an education loan from a financial institution covered under Section 80E of the Income Tax Act, the TCS rate is just 0.5% above ₹7 lakh. If you're funding education from your own savings (no eligible loan), the rate is 5% above ₹7 lakh. Both rates are far lower than the 20% that applies to investments, travel, and gifts.
Not through informal channels. Any crypto purchased in India using INR that is sent to a foreign wallet is treated as an outward LRS remittance and must go through an Authorised Dealer bank. P2P crypto transfers abroad without LRS declaration are FEMA violations. There are RBI-licensed platforms exploring compliant crypto remittance corridors, but as of 2026, all legal outward transfers must be routed through an AD bank.
No. LRS applies only to resident individuals as defined by FEMA. Non-Resident Indians (NRIs) are not resident individuals under FEMA and cannot use LRS. NRIs remit funds abroad from their NRE (Non-Resident External) or NRO (Non-Resident Ordinary) accounts, which are governed by separate RBI rules — not LRS.
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