Housing, Cars & Remittances
True-Cost Remittance & TCS Fee Estimator
See the real cost of an India–US transfer: flat fees, hidden exchange-rate margin, and India's TCS on outward remittances — and the net amount that actually arrives.
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Educational estimate only. Not legal, tax, immigration, or financial advice. Full disclaimer below.
Source: TCS on remittances under the Income-tax Act, 1961 (Section 206C(1G)) and, for periods from 1 April 2026, the corresponding provisions of the Income-tax Act, 2025 / Income-tax Rules, 2026 — which may be renumbered; verify the current section before relying on a number. RBI Liberalised Remittance Scheme (LRS). · data last checked . Verify before making decisions.
India charges 20% TCS on outward remittances above ₹10 lakh per year for most purposes (the threshold was raised to ₹10 lakh from FY 2025-26); you can reclaim TCS as an income tax credit when filing in India. Enter your transfer amount, provider, and current exchange rate to see total fees, TCS withheld, exchange-rate margin, and the net USD (or INR) amount received on the other end.
- Who this is for
- NRIs and Indians sending money between India and the USA — whether transferring savings, paying for education, or repatriating property sale proceeds
- Timeline / decision window
- TCS applies within India's financial year (April–March) based on your cumulative LRS remittances. TCS collected is credited/refundable when you file your India income-tax return for that year.
What you'll need for the calculator
- The amount you're sending and the direction (India → US)
- The purpose of the remittance (education, medical, investment, family maintenance)
- The remittance provider or bank and its flat fee
- The exchange rate offered vs the mid-market rate (the FX spread)
- Your total LRS usage for the year so far
Numbers shown are estimates. Tax rates, fees, thresholds, and treaty rules change and depend on your visa status, state, and individual circumstances — verify with a qualified professional before acting.
Your details
Net amount received
₹8,52,693
Total cost of this transfer
$85
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Estimate only. TCS assumes this is your transfer above the ₹10 lakh annual threshold for the chosen purpose; rules and the US remittance fee change. Verify current rates with your provider and a tax professional.
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After the calculator
What your result means
The calculator breaks a transfer into its real components — flat fee, exchange-rate margin, and TCS — and shows the net amount that actually arrives. The key insight: TCS is usually recoverable when you file your India return, so it's a cash-flow cost rather than a permanent one, while the FX spread and fees are the costs you can't get back. Optimize the recoverable and non-recoverable parts differently.
What makes up the true cost of a remittance
LRS (Liberalised Remittance Scheme)
The RBI's LRS lets resident individuals remit up to a set annual limit abroad for permitted purposes. Your cumulative LRS usage in the year determines when TCS kicks in.
TCS (Tax Collected at Source)
On certain outward remittances above the annual threshold, the bank collects TCS up front. It's not a separate final tax — it's a prepayment you can claim back as a credit or refund on your India return.
Purpose matters
TCS treatment varies by purpose and applies only above the ₹10 lakh aggregate threshold per financial year. Remittances for overseas education funded by a qualifying loan under Section 80E(3)(b) are exempt from TCS collection; education not funded by such a loan, medical treatment, investment, and family maintenance are treated differently. Rates change between Finance Acts, so confirm the current-year rate for your purpose.
Bank fees and FX spread
Beyond TCS, the real cost includes the provider's flat fee and — often larger — the hidden exchange-rate margin (the gap between the rate you get and the mid-market rate). The spread is frequently the biggest cost people overlook.
TCS credit / refund
Because TCS is a prepaid tax, you reclaim it against your tax liability (or as a refund) when you file. So the cash-flow hit is temporary even though it feels like an extra charge at the time.
Tax consequences
TCS is a prepaid tax, not a final one
TCS collected on your remittance is credited against your India tax liability, and any excess is refundable when you file. Keep the TCS certificate to claim it.
Purpose-based thresholds
Education (particularly funded by an education loan), medical, and other purposes can attract different TCS thresholds and rates than general remittances. Classify the purpose correctly.
FX spread and fees aren't recoverable
Unlike TCS, the exchange-rate margin and provider fees are true costs. Comparing providers on the effective rate — not just the advertised fee — is where the real savings are.
Step-by-step process
- 1Choose a remittance provider or bank and compare the effective rate (flat fee plus FX spread), not just the advertised fee.
- 2Gather your PAN, the correct purpose code, and complete Form A2.
- 3Confirm how much TCS applies based on your cumulative LRS usage and the purpose of the remittance.
- 4Complete the transfer and collect the TCS certificate the bank issues.
- 5When you file your India income-tax return, claim the TCS as a credit or refund.
Common mistakes to avoid
- Comparing providers on the flat fee alone and ignoring the FX spread, which is often the bigger cost.
- Treating TCS as a lost extra tax instead of claiming it back on your India return.
- Declaring the wrong purpose code, which can change the TCS treatment.
- Losing the TCS certificate and being unable to claim the credit.
- Overlooking Form 15CA/15CB when the remittance is tied to income or a property sale.
Example scenario
Sending ₹20 lakh from India to the US for investment
Neha remits ₹20 lakh to her US account for investment. Her bank quotes a modest flat fee, but the exchange rate is a fraction below mid-market — that hidden spread costs more than the fee. Because her cumulative LRS remittances cross the annual threshold, the bank also collects TCS up front. Neha keeps the TCS certificate and, when she files her India return, claims the TCS back as a credit — so her real, non-recoverable cost is mostly the FX spread and fee, not the TCS.
How a remittance flows
The typical steps and documents for an India → US transfer.
Choose provider
- What to check
- Effective rate (fee + FX spread), not just the flat fee
- Notes
- The spread is often the largest and least visible cost.
Gather documents
- What to check
- PAN, purpose code, Form A2
- Notes
- The declared purpose affects TCS treatment.
Bank collects TCS
- What to check
- TCS applied on cumulative LRS above the threshold
- Notes
- Get the TCS certificate for your records.
File India return
- What to check
- Claim TCS credit / refund
- Notes
- The up-front TCS comes back as a credit or refund.
Fees, timelines, forms, and agency rules can change. Always verify with official government sources before filing or making decisions.
Related tools & guides
Frequently asked questions
Is TCS an extra tax?
Not really — TCS is a tax collected up front on certain remittances, but it's a prepayment, not a separate final tax. You can claim it as a credit against your income-tax liability or get it refunded when you file your India return.
Can I claim a TCS refund?
Yes. TCS collected on your outward remittance is credited against your India tax for the year, and any excess is refundable when you file your income-tax return. Keep the TCS certificate the bank issues.
What is the LRS?
The Liberalised Remittance Scheme is the RBI framework that lets resident individuals send up to a set amount abroad each financial year for permitted purposes. Your cumulative LRS usage determines when TCS applies.
Does TCS apply to NRI remittances?
TCS under the LRS applies to resident individuals remitting abroad. NRIs remitting from their NRO/NRE accounts follow different rules and limits, so the LRS-based TCS may not apply the same way — check your account type and residency.
What documents are needed for an India-to-USA remittance?
Typically your PAN, the correct purpose code, and Form A2, plus the TCS certificate the bank issues. For remittances tied to income or property, Form 15CA/15CB may also be required.
How do banks calculate remittance cost?
The total cost is the flat transfer fee, plus the exchange-rate margin (the gap between the rate you get and the mid-market rate), plus any TCS collected. The FX spread is often the biggest piece, and TCS is recoverable — so compare providers on the effective rate.
Reviewed for 2026 · data last checked . Source: TCS on remittances under the Income-tax Act, 1961 (Section 206C(1G)) and, for periods from 1 April 2026, the corresponding provisions of the Income-tax Act, 2025 / Income-tax Rules, 2026 — which may be renumbered; verify the current section before relying on a number. RBI Liberalised Remittance Scheme (LRS).. Figures are estimates and may change — verify before acting.
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Disclaimer, assumptions & sources
This tool is for general education and planning only. It does not replace advice from a CPA, attorney, financial advisor, USCIS, IRS, State Department, or other official source. Rules, limits, forms, fees, dates, and government processing information may change. Always verify before filing, investing, or making immigration, tax, or financial decisions.
- For educational use only — not legal advice.
- Not tax advice.
- Not financial advice.
- Not immigration advice.
- Numbers, forms, fees, dates, rules, and limits may change at any time.
- Always verify with official sources before acting.
- Consult a CPA, attorney, financial advisor, or the relevant official agency (USCIS, IRS, State Department) when it matters to your situation.
This calculator provides general estimates and is not financial, tax, legal, or immigration advice. Rules change and vary by state, visa status, and individual circumstance. Consult a qualified professional before acting.
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