| Tax/Charge | When It Applies | Rate / Basis / Threshold | Key Details / Exceptions |
| Tax Collected at Source (TCS) on outward remittance under Liberalised Remittance Scheme (LRS) | When a resident individual remits money abroad or loads forex-card / foreign currency under LRS. |
• Nil if total remittance ≤ ₹10 lakh in a financial year (revised limit w.e.f. 1 April 2025). • 5% on amount exceeding ₹10 lakh (for most LRS purposes). • 0.5% for education remittance funded by an education loan (above threshold). |
• TCS is applied on the remitted amount, not on conversion or service charges. • Higher TCS may apply if PAN/Aadhaar is missing or invalid. • Overseas tour packages may have separate TCS rules. • TCS can be claimed as credit in income-tax return. • GST is not charged on the TCS amount. |
| Goods and Services Tax (GST) on foreign exchange / currency conversion / remittance services | When converting foreign currency, loading forex cards, or when banks/forex dealers charge service/commission. |
GST @ 18% on service value (not on the full exchanged amount). Service value calculation slabs: • Up to ₹1,00,000 → 1% of amount (minimum ₹250). • ₹1,00,001 – ₹10,00,000 → ₹1,000 + 0.5% of amount above ₹1 lakh. • Above ₹10,00,000 → ₹5,500 + 0.1% of amount above ₹10 lakh (with GST cap). |
• GST applies only on service/commission/fee charged by banks or dealers. • GST does not apply to the foreign currency itself (money is not taxed). • Inter-bank forex transactions are often exempt. • GST applies even if TCS is collected, but GST is not charged on the TCS amount. |