Revised TCS Rates on Foreign Exchange Transactions Under LRS Effective April 1, 2025
New Delhi, May 5, 2025 – The Government of India has revised the Tax Collected at Source (TCS) rates applicable to foreign currency transactions under the Liberalised Remittance Scheme (LRS). These updated rates will come into effect from April 1, 2025, and apply to all resident individuals remitting funds abroad or purchasing foreign exchange.
? New TCS Rates on LRS Transactions
| Type of Remittance |
TCS Rate (PAN Active) |
TCS Rate (PAN Inoperative) |
| 1. Education through a loan from a recognised institution |
NIL |
NIL |
| 2. Education (not through a loan) or Medical Treatment |
Up to ₹10 Lakhs: NILAbove ₹10 Lakhs: 5% |
Up to ₹10 Lakhs: NILAbove ₹10 Lakhs: 10% |
| 3. All other purposes under LRS (e.g. travel, gifts, investments) |
Up to ₹10 Lakhs: NILAbove ₹10 Lakhs: 20% |
Up to ₹10 Lakhs: NILAbove ₹10 Lakhs: 20% |
? Key Points to Remember
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The ₹10 lakh limit is cumulative across all foreign transactions in a financial year per PAN, regardless of the bank or mode of transaction.
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Booking air tickets or hotels abroad using your HDFC Bank account falls under “All other purposes” and is subject to the applicable TCS.
⚠️ What is an Inoperative PAN?
A PAN is considered inoperative if:
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It was issued before July 1, 2017, and
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It was not linked with Aadhaar by March 31, 2022, for eligible individuals.
If your PAN is inoperative, higher TCS rates will apply.
✅ What You Should Do
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Verify your PAN-Aadhaar linkage to avoid higher deductions.
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Plan remittances wisely, especially if you expect to cross the ₹10 lakh threshold.