Refund of TCS on International Remittance – The What & How (2025 Updated Guide)

Did you pay TCS while sending money abroad? You could be eligible for a refund, and most people don’t even know it. That extra tax, known as Tax Collected at Source or TCS, can actually be claimed back by simply filing your Income Tax Return. In this guide, we’ll walk you through everything you need to know about the refund of TCS on international remittance. We’ll cover who can claim it, how the process works, real-life examples, and answers to the most common questions people ask when searching for TCS refunds. If you’re owed money, let’s make sure you get it back.

What is TCS on Foreign Remittance?

The refund of TCS on international remittance starts with understanding what TCS is and why it’s deducted when sending money abroad.

Under India’s Liberalized Remittance Scheme (LRS), individuals can send up to $250,000 abroad annually. But if your remittance exceeds certain thresholds, your bank deducts TCS, a tax meant to track large outbound transfers.

This isn’t a permanent charge. The refund of TCS on international remittance is possible if your total income tax liability is less than the TCS amount paid.

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TCS Rates for 2025 (Post-April 1)

Note: These thresholds apply per financial year per PAN. The TCS rate may be higher (e.g., 10%) if PAN is inoperative.

How to Avoid 20% TCS on Foreign Remittances Legally

Is TCS on Foreign Remittance Refundable?

The refund of TCS on international remittance is a legal and process-driven benefit available to individuals whose total tax liability is lower than the amount of TCS paid.

Yes. The TCS on international remittance is refundable while filing your ITR. If your overall tax liability is lower than the TCS collected, including cases like unused forex cards, you’re eligible for a refund.

Who Can Claim the Refund?

To be eligible for a refund of TCS on international remittance:

• You must be an Indian resident remitting money abroad.

• TCS was collected at 5% or 20% on your transfer.

• You file your ITR before the deadline.

• Your overall tax liability is lower than the TCS paid.

• You can provide all supporting documents (bank statements, A2 form, offer letter, etc.).

Real Scenarios with Refund Eligibility

How to Get TCS Refund on Foreign Remittance – Answered

If you’re searching “how to claim TCS refund on foreign remittance” or “can we get TCS refund?” — here’s what matters:

• You must include the TCS paid in your ITR.

• Even if the TCS was collected for multiple remittance purposes (education + travel), you can still claim a proportionate refund.

• If you used a travel card and didn’t spend the full amount, you can also request a refund on the unused portion.

• If your PAN was inoperative and you were charged 10%, and now your PAN is active, you can still adjust the refund accordingly.

Complete Guide to Sending Living Expenses to the USA from India

Step-by-Step: How to Claim TCS Refund

1. Obtain Form 27D

Issued by the bank/remittance platform confirming TCS collected.

2. Check Form 26AS

Log into incometax.gov.in and verify TCS entries.

3. File Your ITR

Include the TCS amount in the ‘TDS/TCS’ section.

4. Attach Supporting Documents

Include proof of remittance, bank statements, A2 forms, purpose-specific docs.

5. Submit and Track Refund

Post-verification, the excess TCS is credited to your bank account.

Before you dive into the process, here are the top 5 mistakes to avoid when claiming a refund of TCS on international remittance — so you don’t lose time or money:

Timeline for Receiving the Refund

Typically, after filing your ITR:

• The Income Tax Department processes returns within 2-3 months.​

• If eligible for a refund, it’s usually credited within 1-2 months post-assessment.​

Ensure your bank account details are updated and linked to your PAN to avoid delays.

Tips to Avoid or Minimize TCS on Foreign Remittances

• Plan Remittances: Keep annual remittances within the ₹10 lakh threshold to avoid TCS.​

• Use Education Loans: For overseas education, consider funding through loans from specified financial institutions to benefit from TCS exemptions.

• Maintain Documentation: Keep all relevant documents, including admission letters, fee receipts, and loan agreements, to support your claims.

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How to Maximize Your Refund?

• File your ITR as early as possible.

• Keep all documents organized.

• If using a forex card, retain balance statements.

• Consult a CA if the transaction is large or split across purposes.

Why Use HOP Remit by moneyHOP for International Remittance?

When dealing with TCS on international money transfers, having the right partner matters. HOP Remit by moneyHOP is not just another remittance provider—it’s a full-stack digital platform built for transparency, efficiency, and affordability. Here’s how we stand out:

• Transparent charges – You see the full fee breakdown, including TCS.

• Lowest transfer fees – No hidden forex markups.

• Document repository – Upload tuition invoices, admission letters, and more in one place.

• 24/7 support – Human assistance when you need it.

• Regulatory compliance – Fully aligned with RBI’s LRS and TCS mandates.

Whether it’s university fees or family maintenance, HOP Remit gives you the best rates and the fastest experience.

HOP Remit Enables Money Transfers For The Following Purposes:

• Overseas Education – University Fees

• Overseas Education – Living Expenses

• Family Maintenance

• Personal Gift or Donation

The Road Ahead

Whether you’re remitting for education, family support, or other purposes, understanding the refund of TCS on international remittance ensures you’re not paying more than required. With proper documentation and timely ITR filing, you can recover the excess tax deducted at the source with ease.

Refund of TCS on international remittance is not just possible — it’s your right. If you’ve paid more than your fair share of tax through TCS deductions, claim it back confidently by following the steps in this guide.

And with partners like HOP Remit by moneyHOP, managing international transfers becomes seamless, transparent, and completely stress-free.