Important Update!
Zero TCS on Forex Transactions Below 10 lakhs in a Financial Year from April 1st, 2025
Total Amount: ₹0.00
Starting October 1, 2023, TCS on forex transactions under LRS increased from 5% to 20% for amounts exceeding ₹7 lakh, except for education and medical expenses. In the Union Budget 2025, the threshold has now been raised from 7 lakh to ₹10 lakh. Hence, forex transactions of less than Rs 10 lakh in a financial year are not subject to any Tax Collected at Source (TCS) from April 1st, 2025.
| Type of Transaction | Previous TCS Rate | New TCS Rate (Starting 1st April 2025) |
|---|---|---|
| Purchase of forex (Currency Notes & Forex Card) | 20% (only for spends over Rs. 7 lakhs in the financial year) | 20% (only for spends over Rs. 10 lakhs in the financial year) |
| Purchase of Forex for Education and Medical Visits | 5% (only for spends over Rs. 7 lakhs in the financial year) | 5% (only for spends over Rs. 10 lakhs in the financial year) |
| Outward Remittances (except for education & medical purposes) | 20% (only for forex spends over Rs. 7 lakhs in the financial year) | 20% (only for spends over Rs. 10 lakhs in the financial year) |
| Outward remittances for education/medical purposes | 5% (only for forex spends over Rs. 7 lakhs in the financial year) | 5% (only for forex spends over Rs. 10 lakhs in the financial year) |
| Outward remittances for education (with education loan) | 0.5% (only for forex spends over Rs. 7 lakhs in the financial year) | 0% (no TCS is applicable) |
For more details about New Tax Collected at Source (TCS) slabs, click on the link below:
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