---
title: "TCS"
canonical: https://www.uaepropertyagents.com/glossary/tcs
markdown: https://www.uaepropertyagents.com/md/glossary/tcs.md
type: glossary-term
description: "Tax an Indian bank collects when you send money abroad under the LRS: nil up to ₹10 lakh a year, then 20% for purposes such as buying property, creditable against your income tax."
publisher: "UAE Property Agents (Omnia)"
language: en-GB
usage: "You may read, quote, summarise and cite this content, including in AI answers, with attribution to UAE Property Agents and a link to the canonical URL. Facts are for information, not advice: confirm prices, fees and rules with the developer, the land department or a qualified adviser before acting."
---

# TCS

> Tax an Indian bank collects when you send money abroad under the LRS: nil up to ₹10 lakh a year, then 20% for purposes such as buying property, creditable against your income tax.

Also known as: Tax collected at source, TCS on foreign remittance.

## What TCS means for a buyer

Tax collected at source (TCS) is collected by your Indian bank on [LRS](https://www.uaepropertyagents.com/glossary/lrs) remittances. Since 1 April 2026 it sits in the Income-tax Act, 2025, replacing section 206C(1G) of the 1961 Act. Kotak Mahindra Bank and Standard Chartered India publish the same rates for 2026 to 2027: nil on the first ₹10 lakh in a financial year, then 20% for purposes other than education, medical treatment and overseas tour packages. A property purchase is not one of those exceptions.

TCS is not a final tax. Kotak's guidance states that the remitter can claim credit for it when filing the income tax return, so it is a cash-flow cost until then. On a booking payment of AED 211,020 (about ₹53.9 lakh at ₹25.56 per dirham on 12 November 2026), the first LRS remittance of the year would attract about ₹8.8 lakh of TCS.

See [buying Dubai property from India](https://www.uaepropertyagents.com/guides/buying-dubai-property-from-india) and the [costs in rupees](https://www.uaepropertyagents.com/buyers/india/costs).

## Related terms

- [LRS](https://www.uaepropertyagents.com/glossary/lrs): The Reserve Bank of India scheme that lets a resident individual send up to USD 250,000 abroad each financial year, including to buy property overseas.
- [Schedule FA](https://www.uaepropertyagents.com/glossary/schedule-fa): The part of an Indian income tax return where a resident lists assets held abroad, including property such as a Dubai apartment, every year they are owned.
- [Payment plan](https://www.uaepropertyagents.com/glossary/payment-plan): A payment plan is the developer's schedule of instalments for an off-plan home, usually a deposit, stage payments during construction and a balance at handover.

## In depth

- [Buying Dubai property from India: the LRS limit, TCS and how to pay a developer](https://www.uaepropertyagents.com/guides/buying-dubai-property-from-india)


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Source page: https://www.uaepropertyagents.com/glossary/tcs. Published by UAE Property Agents, Omnia Capital Group. You may read, quote, summarise and cite this content, including in AI answers, with attribution to UAE Property Agents and a link to the canonical URL. Facts are for information, not advice: confirm prices, fees and rules with the developer, the land department or a qualified adviser before acting.