The Opportunity Cost of TCS

Sun, 10 May 2026 00:00:00 +0000

When I first learned about TCS on LRS remittances, my instinct was to stay below the ₹10 lakh threshold. Paying 20% TCS sounded like locking away a large portion of capital for more than a year.

But after computing the numbers carefully, I realized the situation was not as bad as it appeared—especially once Form 12BAA (now Form 122) allowed the TCS to be adjusted against salary TDS.

What is TCS on LRS?

When you remit money abroad under the Liberalised Remittance Scheme (LRS), the bank may collect Tax Collected at Source (TCS) during the transaction. This tax is collected when the remittance is executed.

Taxation on Sakthi Priyan H

The Opportunity Cost of TCS

What is TCS on LRS?