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Revision in TCS on LRS Transactions w.e.f 1st April 2025

Revision in TCS on LRS Transactions w.e.f 1st April 2025


Liberalised Remittance Scheme (LRS), is a facility where all resident individuals (as defined under FEMA 1999), including minors, are allowed to freely remit up to USD 250,000 per financial year (April – March) for any permissible current or capital account transaction or a combination of both.


TCS was introduced by the Finance Act 2020 on Foreign Exchange transactions applicable to Resident Indian under Liberalised Remittance Scheme (LRS).


We would like to inform you on the revised TCS rates on Forex drawls/ remittances by Resident Individuals under Liberalised Remittance Scheme (LRS) effective from 1st April 2025, which is as under.


Sr No

Purpose of Remittance abroad

New TCS rate (w.e.f 1st April 2025)




Normal PANInoperative PAN
i.

LRS for education purpose, if the amount being remitted is from education loan obtained from a specified institution 

NIL

NIL
ii.

LRS for the purpose of education, other than (1) above (or) for the   purpose of medical treatment. 

Upto 10 Lakh: NIL 

Above 10 Lakhs: 5% 

Upto 10 Lakh: NIL 

Above 10 Lakh: 10% 


iii.

Any other purpose under LRS 

Upto 10 Lakh: NIL 

Above 10 Lakh: 20% 

Upto 10 Lakh: NIL 

Above 10 Lakh: 20% 



Note :


  1. Threshold limit of Rs. 10 lakh per FY for LRS as mentioned above is a combined limit qua PAN on all categories of LRS remittance , through all modes of payments across all the Authorised Dealers, regardless of the purpose.

  2. Threshold limits as mentioned above are remittances/forex drawls availed under LRS across all Authorised Dealers (ADs) and RBI licensed entities (Authorised Persons).

  3.  LRS remittance processed by the Bank as an Authorised Dealer towards air travel ticket booking or hotel booking by a resident individual customer would be subject to TCS as per the rate provided as mentioned in point no. (iii) of the above table. 

Definition of Inoperative PAN:  


As per Section 139AA, every person who has been allotted PAN as on the 1st day of July, 2017, and who is eligible to obtain Aadhaar number, should link Aadhaar number with PAN allotted on or before  31-03-2022. In case of failure to link the Aadhaar number, PAN allotted to the person shall be made inoperative after the date so notified. 


For any further assistance, please contact your Relationship Manager or nearest Branch.