TCS Calculator
Work out tax collected at source on a sale or a foreign remittance. Pick the transaction, enter the value, and see the rate, the part that is taxable and the TCS the seller or bank will collect.
Rates are for tax year 2026-27 under Section 394 of the Income-tax Act, 2025 (old Section 206C). Check the latest notification before you file.
TCS is not an extra cost. It shows up in Form 26AS and AIS against your PAN, and you claim it as a credit against your income tax for the year, or as a refund.
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How to calculate TCS
TCS is a percentage of the taxable value of a transaction. For most goods it applies to the full sale value. For LRS remittances it applies only to the amount above the ₹10 lakh yearly free limit, except tour packages, which are taxed from the first rupee.
The amount TCS applies to. For goods, take the sale value from the invoice. For LRS, take the part of the remittance above the ₹10 lakh limit, using the remittances already made this year from your bank's A2 forms.
Example: ₹4 lakh sent earlier, ₹15 lakh now, taxable ₹9 lakhThe percentage set for the transaction type in Section 394. Read it from the rate table below, then double it (minimum 5%) if no PAN or Aadhaar was given.
Example: other LRS purpose = 20%, scrap = 2%| Fees remitted abroad | ₹18,00,000 |
| Remitted earlier this year | ₹0 |
| Free limit | ₹10,00,000 |
| Taxable portion | ₹8,00,000 |
| TCS at 2% | ₹16,000 |
- Pick the category: education not funded by a loan, 2% above ₹10 lakh
- Find the taxable part: 18,00,000 minus the unused limit of 10,00,000 = ₹8,00,000
- Apply the rate: 8,00,000 × 2% = ₹16,000
- Check PAN: without it, the rate becomes 5% and TCS is ₹40,000
TCS rates for tax year 2026-27
Section 394 of the Income-tax Act, 2025 replaces Section 206C from tax year 2026-27. The rates below include the old section references so you can match them to older returns and Form 27EQ.
| Transaction | Old reference | Rate | Applies to |
|---|---|---|---|
| Alcoholic liquor for human consumption | 206C(1) | 2% | Full sale value |
| Tendu leaves | 206C(1) | 2% | Full sale value |
| Timber and other forest produce | 206C(1) | 2% | Full sale value |
| Scrap | 206C(1) | 2% | Full sale value |
| Coal, lignite, iron ore | 206C(1) | 2% | Full sale value |
| Motor vehicle or notified luxury goods | 206C(1F) | 1% | Full value, only if above ₹10 lakh |
| LRS, education funded by a loan | 206C(1G) | Nil | Not applicable |
| LRS, education not loan funded | 206C(1G) | 2% | Amount above ₹10 lakh a year |
| LRS, medical treatment | 206C(1G) | 2% | Amount above ₹10 lakh a year |
| Overseas tour package | 206C(1G) | 2% | Full amount from the first rupee |
| LRS, any other purpose | 206C(1G) | 20% | Amount above ₹10 lakh a year |
| No PAN or Aadhaar given | 206CC | 2x rate, min 5% | Capped at 20% for LRS |
Rates for tax year 2026-27. The ₹10 lakh LRS limit is per person, per financial year, across all purposes. Check the latest CBDT notification before filing.
Get a one-page summary of the rate, taxable portion and TCS for this transaction.
How to manage TCS without surprises
For sellers, TCS is a compliance task on every invoice. For buyers and remitters, it is cash that comes back later. A few habits keep both sides clean.
Without PAN the rate jumps to at least 5%. Make PAN a mandatory field in customer onboarding.
TCS sits on the invoice, so short payments of TCS show up as open receivables. Tag it separately so collections teams chase the right amount.
TCS collected in a month must be deposited by the 7th of the next month. Late deposit draws interest at 1% a month.
The ₹10 lakh limit is shared across purposes. Sending education fees before other remittances keeps more of them at 2% rather than 20%.
Remittances funded by an education loan from a financial institution carry no TCS. Give your bank the sanction letter before the transfer.
Check that every TCS entry appears in Form 26AS and AIS. A missing entry means a missing credit until the collector corrects it.
Frequently asked questions
Multiply the taxable value by the TCS rate for the transaction. For scrap sold for ₹5 lakh, TCS is 5,00,000 × 2% = ₹10,000. For LRS remittances, only the amount above the ₹10 lakh yearly limit is taxable.
It depends on the purpose. Education funded by a loan is nil, self-funded education and medical treatment are 2% above ₹10 lakh, overseas tour packages are 2% from the first rupee, and other purposes such as investment or gifts are 20% above ₹10 lakh.
Yes, if the car costs more than ₹10 lakh. TCS at 1% applies to the full value, not just the part above ₹10 lakh. A ₹25 lakh car attracts ₹25,000 of TCS.
The higher of twice the normal rate or 5% applies. For LRS remittances the higher rate is capped at 20%. Giving PAN or Aadhaar before the transaction avoids this.
Yes. TCS is credited to your PAN and appears in Form 26AS and AIS. You claim it in your income tax return against your tax for the year, and any excess comes back as a refund.
TDS is deducted by the payer when making a payment. TCS is collected by the seller or bank from the buyer on top of the sale value. Both are deposited with the government and credited to the other party's PAN.
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