TCS on foreign remittance - How to get Your TCS Refund (2024)

Blog Outline

• TCS is collected by the authorized dealers, banks, or entities facilitating the foreign transactions.
• TCS is applicable only if the transaction amount exceeds the specified threshold limits for a few cases such as medical and educational . Always keep a check .
• Residents making foreign transactions are required to provide their Permanent Account Number (PAN) to ensure proper tax collection.
• Individuals and businesses are responsible for complying with TCS regulations and making the necessary TCS payments.
• The TCS collected is usually deposited with the government, and the person or entity making the payment can claim a credit for the TCS amount while filing their income tax return.

• 0.5% if the remittance is for education financed by a loan from a financial institution.
• 5% for remittances for education or medical treatment.
• 20% for other purposes.

• File Your Income Tax Return: Include the TCS amount in your tax return. This is the trigger for the refund process.
• Ensure Accurate TCS Credits: Verify that all TCS amounts are reflected correctly in your Form 26AS.
• Wait for Processing: The Income Tax Department will process your return and ascertain the refund amount.
• Bank Account Details: Make sure you’ve provided correct bank details in your return for a seamless refund experience.

• PAN Card: Your Permanent Account Number is crucial for all tax-related processes.
• TCS Certificates: Collect Form 27D from the seller(s) who collected TCS from you.
• Form 26AS: This tax credit statement reflects all the taxes paid on your behalf; ensure that it shows the TCS amounts accurately.
• Bank Statement: Sometimes required for verification of the TCS transactions.
• Income Tax Return (ITR) Acknowledgment: After filing your ITR, keep the acknowledgment receipt ready.
• Proof of Investments and Deductions: If you have claimed deductions which affect your tax liability, keep those documents on hand.
• Previous Year’s Tax Records: If applicable, to provide a history of your tax filings and refunds.
• Aadhaar Card: For identity verification, as it’s now linked with PAN for tax purposes.
• Make sure to provide necessary proofs if TCS for education or medical.

• Go to the e-filing portal: https://www.incometax.gov.in
• Log in using your PAN (Permanent Account Number) and password.
• Navigate to the ‘e-File’ menu and click on ‘Income Tax Returns’ and then ‘View Filed Returns’.
• Here, you will be able to see the status of your filed returns, including details of any refunds issued.

• Visit the TIN NSDL website: https://tin.tin.nsdl.com/oltas/refundstatuslogin.html
• Enter your PAN and select the relevant assessment year for which you want to check the refund status.
• Enter the captcha code and click on ‘Submit’ to view your refund status.

• Verify TCS Amounts: First, ensure that the TCS amounts deducted throughout the year are correctly reflected in your Form 26AS.
• File Accurate Returns: While filing your income tax return, report the correct TCS amounts. Your tax liability will be calculated after considering all prepaid taxes, including TDS, TCS, and advance tax.
• Claim Refund: If the TCS exceeds your total tax liability for the year, the excess amount is eligible to be refunded. This claim is made through your income tax return.