LRS for Travel - Guide for Indians (2025)

Expert Note: TCS can look complicated, especially when family members, multiple PANs, or medical/education spends are involved. At Paasa, our team helps investors structure their LRS usage smartly whether for travel or global investments across the US, UK, Europe, China and more.

How to Claim Back TCS on Travel

TCS collected on your overseas travel spend is not an additional cost, it is an advance tax. You can adjust it against your final income-tax liability or claim it as a refund.

Where TCS Appears

• Every bank, forex dealer, or tour operator that collects TCS deposits it against your PAN.
• These entries automatically show up in your Form 26AS and Annual Information Statement (AIS) on the income-tax portal.

How to Claim It in Your Tax Return

• While filing your Income Tax Return (ITR), go to the Taxes Paid section.
• Enter the TCS amounts reflected in 26AS/AIS.
• The system automatically adjusts this against your overall income-tax liability.
• If your liability is lower than the TCS already collected, the excess will be refunded to your bank account.

Common Questions

Do I need to submit my travel invoices or tickets to the Income Tax Department?
No. Banks and operators already report TCS against your PAN. You only need to match it in Form 26AS/AIS while filing. Keep invoices handy in case of future queries.

How do I check if TCS has been credited to my PAN?
Login to the income-tax portal and download Form 26AS or check your AIS. The TCS entries will show under “Taxes Paid.”

What if the TCS doesn’t show up in my 26AS/AIS?
It usually means the bank/operator deposited it under the wrong PAN or hasn’t uploaded it yet. Raise the issue with them immediately before filing your ITR.

What if my family splits the travel cost, who claims the TCS?
TCS is linked to the PAN against which the remittance or booking was made. That person must claim it in their return.

FAQs

Can unused LRS limit be carried forward to the next year?
No. The limit resets every financial year (April to March). Unused quota in one year cannot be carried forward.

Do remittances under different heads like travel, education, and investments add up to the same limit?
Yes. The USD 250,000 cap is a combined limit across all purposes. If you remit USD 100,000 for investments and USD 80,000 for education, only USD 70,000 remains for travel or any other purpose in that financial year.

Can a minor child use LRS for travel?
Yes. Minors are eligible for the full USD 250,000 limit under LRS. However, the remittance must be made by their natural guardian or custodian on their behalf.

How much foreign currency in notes can I legally carry under LRS for my trip?
Up to USD 3,000 (or equivalent) per traveler in currency notes. The rest should be carried via forex card, drafts, or bank transfers.

What happens if I accidentally select the wrong purpose code, is it illegal or just a compliance issue?
It’s not “illegal” but it is a compliance breach. Banks may reject the remittance or ask you to refile. Repeated misuse can trigger scrutiny.

If I remit money abroad through Paasa for investments, can I later use the same funds for travel or living expenses?
Yes. With Paasa, funds remitted under your LRS limit are first credited to your global brokerage account. If you maintain a US bank account, you can transfer money from your brokerage account to that bank account and then use it for travel, family, or living expenses abroad. This gives you flexibility to access your own money overseas while staying fully compliant with RBI and tax regulations.

Conclusion

Using your LRS limit for overseas travel is completely legal, but it comes with nuances around purpose codes, TCS, and compliance that many Indian travelers overlook. The line between what is permitted, what is prohibited, and what simply needs the right classification can make a big difference in cost and peace of mind.

For most families, travel is just one part of how their LRS is used. The same annual quota also covers investments, education, and medical expenses abroad. Managing this holistically is what ensures you get the most value without compliance friction.

This is where Paasa helps. It is a compliance-first platform that not only enables global investments but also supports Indian HNIs and family offices in structuring their LRS usage smartly across travel, investments, and other cross-border needs.

About Paasa

Paasa is an Indian investor's gateway to global investing which helps HNIs, family offices, and institutional investors diversify into global markets, from the US and Europe to China, Japan, and beyond.

What sets Paasa apart is the India-facing layer:

• FEMA and LRS compliance built into every transaction
• Tax reporting and analytics tailored for Indian investors (LTCG, STCG, dividend tax, TCS tracking)
• End-to-end support for remittance, reconciliation, and compliance queries

Whether you’re allocating to equities, ETFs, UCITS funds, or managed strategies, Paasa gives you a single, transparent platform to manage your global portfolio with the assurance that your India-specific compliance is always taken care of.

Disclaimer

This blog is for informational purposes only and should not be considered investment, tax, or legal advice. The information provided is based on publicly available regulations and our understanding of the Liberalised Remittance Scheme (LRS) as of the time of writing. Regulations, tax laws, and RBI guidelines are subject to change, and the actual applicability may vary depending on your personal circumstances.

International travel and investments involve risks, including foreign exchange fluctuations, political and regulatory changes, and market volatility. Readers are advised to consult their financial, tax, and legal advisors before making any remittance or investment decisions.

Paasa disclaims any liability for actions taken based on this content.