What is TCS?
Tax Collected at Source (TCS) is a tax collected by the Authorised Dealer (like Best Deal Forex) at the time of your forex transaction. It is not an additional expense — it is a tax credit that you can claim when filing your Income Tax Return.
When Does TCS Apply?
TCS under LRS applies when your cumulative forex remittances in a financial year exceed ₹7 lakh. The applicable rates are:
- Education (from own funds): 5% above ₹7 lakh
- Education (from education loan): 0.5%
- Medical purposes: 5% above ₹7 lakh
- All other LRS purposes (travel, family maintenance, investment): 20% above ₹7 lakh
How to Claim TCS Refund
TCS is reflected in Form 26AS and AIS. You claim it as a credit while filing your ITR — it reduces your final tax liability. If your income is below the taxable limit, you can claim a full refund.
Best Deal Forex's Role
We collect TCS on your behalf and deposit it with the government. We issue a TCS certificate (Form 27D) that you use while filing your ITR. Our team will guide you through the entire process.