The 60-second version
Section 206CL applies higher TCS on LRS remittance for overseas education and medical treatment — returning NRIs funding children abroad must track AD bank TCS certificate and claim credit in ITR.
206CL is education/medical LRS lane — distinct from general 5% 206C(1G) on other outward remittance
Section 206CL requires AD bank to collect TCS on LRS remittance for overseas education or medical treatment at enhanced rate above threshold.
Returning NRIs funding tuition or hospital bills abroad must obtain TCS certificate from AD bank and claim credit in ITR against actual tax liability.
General LRS lane: Section 206C(1G) guide for non-education outward remittance.
LRS TCS matrix
| Purpose | Section | Rate | Collector |
|---|---|---|---|
| Education abroad | 206CL | 7.5% | AD bank |
| Medical abroad | 206CL | 7.5% | AD bank |
| General LRS | 206C(1G) | 5% | AD bank |
| Tour package | 206CK | TCS | Tour seller |
206CL reconciliation
Purpose proof
University/hospital docs.
AD bank TCS
Collect at remittance.
TCS cert
From AD bank.
26AS check
Verify TCS credit.
ITR claim
Schedule TCS credit.
Flow
206CL kit
- LRS form.
- Purpose proof.
- TCS cert.
- 26AS.
- SWIFT copy.
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Purpose documentation
AD bank may require university offer letter or hospital estimate before applying education/medical TCS rate.
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206CL vs 206C(1G)?
206CL is education/medical LRS enhanced rate; 206C(1G) is general LRS outward remittance TCS.
Threshold?
Verify current FY threshold with AD bank — rules updated in recent Finance Acts.
Refund?
Excess TCS refunded via ITR if total tax lower than collected.
NRO repatriation?
NRO outward is different lane — see NRO repatriation guides.
206CCA?
Higher TCS if remitter is specified non-filer — see 206CCA guide.
Form 15CA?
NRO repatriation may need 15CA/15CB in addition to LRS TCS rules.
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