Bring Money from India to Canada: LRS, TCS and Forms

Key takeaways

LRS lets a resident individual send up to USD 250,000 per financial year (April to March)
From April 1, 2026, TCS is 2% on education and medical remittances above ₹10 lakh a year, and 20% on most other purposes above ₹10 lakh
Education paid with a loan from a financial institution has no TCS
TCS is an advance of tax: claim it back in your Indian tax return
After you become a non-resident, NRE balances can be moved freely; NRO money has a yearly cap and needs forms

Two stages: before and after you become a non-resident

How you move money depends on your residential status under Indian law.

Before you leave (resident): you send money abroad under the Liberalised Remittance Scheme (LRS). Your bank (an authorised dealer) uses Form A2 and may collect TCS.
After you leave (non-resident Indian, NRI): LRS no longer applies. Your Indian savings move to NRO or NRE accounts, and you repatriate from those.

Many families use both: some money goes before the move, the rest after. Ask your bank which stage applies on the date you send.

The LRS limit: USD 250,000 a year

Under the Reserve Bank of India’s (RBI) Liberalised Remittance Scheme, a resident individual can send up to USD 250,000 per financial year (April 1 to March 31) for allowed purposes. These include studies abroad, maintenance of close relatives, gifts, emigration, medical treatment and investment.

The limit is per person. Each adult family member, and even a minor through a guardian, has their own limit.
You need a Permanent Account Number (PAN) for LRS remittances.
For emigration, studies or medical treatment, the RBI rules allow more than USD 250,000 if the country, university or hospital requires it. Your bank will ask for proof.

A couple moving together can therefore send up to USD 500,000 in one financial year, and more if the move spans two financial years.

TCS rates from April 1, 2026

Tax collected at source (TCS) is an amount your bank collects on top of your remittance and pays to the Income Tax Department. The Finance Act 2026 cut the rates for education, medical and tour packages. As of October 2026 (financial year 2026-27), under section 394 of the Income-tax Act, 2025:

Purpose	TCS
Education, paid with a loan from a financial institution	Nil
Education, paid with your own money	Nil up to ₹10 lakh a year, then 2% on the amount above
Medical treatment	Nil up to ₹10 lakh a year, then 2% on the amount above
Other purposes (gifts, family support, emigration, investment)	Nil up to ₹10 lakh a year, then 20% on the amount above
Overseas tour package	2% from the first rupee

Before April 1, 2026, education and medical were 5% above ₹10 lakh. The ₹10 lakh threshold counts your LRS spending across the financial year. Banks count remittances, forex cards and card spending abroad with them, and ask you to declare remittances through other banks. Without a PAN, a higher rate applies.

Work out your TCS with the India TCS and LRS calculator.

Getting your TCS back

TCS is not a fee and not an extra tax. It is credited to your PAN and appears in Form 26AS. You can adjust it against your Indian income tax for that year, or get it refunded when you file your Indian income tax return (ITR). If you are leaving India, file your ITR for the year you leave to claim it. A tax adviser in India can help if you also have income from property or investments there.

Example: you send ₹25 lakh to your own Canadian account in April 2026 for living costs after you move. ₹10 lakh has no TCS. The other ₹15 lakh has 20% TCS, so the bank collects ₹3 lakh more. You claim the ₹3 lakh back in your ITR.

Forms and documents your bank will ask for

Form A2: the application and declaration for an LRS remittance. It states the purpose and confirms you are within the limit.
PAN card and identity proof.
Purpose documents: for studies, the admission letter and fee invoice; for emigration, your Canadian visa or confirmation of permanent residence.
Beneficiary details: your Canadian account number, transit and institution numbers, the bank’s SWIFT code and address.
Loan sanction letter, if you claim the nil TCS rate for loan-funded education.

Purpose codes and form names can differ by bank. Ask your bank’s forex desk for its checklist one or two weeks before you send.

After you move: NRO and NRE accounts

Once you become a non-resident, tell your Indian bank. Your resident savings account must be changed to an NRO (non-resident ordinary) account.

NRE account: holds money you earned abroad and sent to India. The balance and interest can be moved abroad freely.
NRO account: holds money from India (old savings, rent, sale of property). You can repatriate up to USD 1 million per financial year from it, after tax. Banks usually ask for Form 15CA and, in many cases, a chartered accountant’s certificate (Form 15CB).

Selling property in India? The buyer must deduct tax at source when the seller is an NRI, and you will need tax paperwork before repatriating. Get advice from a chartered accountant.

A sample timeline

When	What to do
2 to 3 months before you leave	Open your Canadian account. Ask your Indian bank for its LRS checklist and how much of the ₹10 lakh threshold you have used this year.
1 month before	Send a test remittance. Send larger amounts under LRS if you want to move money while still a resident. Keep Form A2 copies and TCS certificates.
Travel week	Carry only a little cash. Declare at the Canadian border if your cash and drafts reach CAD 10,000.
After you arrive	Tell your Indian bank you are now a non-resident. Convert your savings account to NRO, open an NRE account if useful.
By July 31 of the next year (or your due date)	File your Indian income tax return and claim the TCS.

The Canadian side: what to expect

Open your Canadian bank account before you arrive so the money has somewhere to go.
Transfers of CAD 10,000 or more are reported by your Canadian bank to FINTRAC and the CRA. This is routine.
Keep proof of the source: Indian bank statements, sale deeds, Form A2 copies and the TCS certificate.
If you carry rupees, drafts or cheques worth CAD 10,000 or more, declare them at the Canadian border. India also limits how much Indian currency a traveller can take out, so carry only a little.
Money you bring is not income in Canada. Income on assets you keep in India (interest, rent) is taxable in Canada after you become a resident.

For sending money the other way later, see sending money to India. Our India to Canada hub gathers everything for Indian newcomers.

Common questions

How much money can I bring from India to Canada?

As a resident, up to USD 250,000 per person per financial year under LRS, with exceptions for emigration, studies and medical costs when required. As an NRI, NRE money is freely repatriable and NRO money up to USD 1 million per financial year.

Is TCS charged on money sent for my own living costs in Canada?

Yes, if it is not for education or medical treatment. Above ₹10 lakh in the financial year, TCS is 20% of the extra amount. You can claim it back in your Indian tax return.

Is there TCS on tuition paid with an education loan?

No. Education remittances funded by a loan from a financial institution have a nil TCS rate. Your bank will ask for the loan documents.

Can my parents send me money in Canada?

Yes. Each parent can use their own LRS limit for a gift or maintenance of a close relative. TCS rules apply to their remittances.

Do I need to pay tax in Canada on money from India?

Not on savings you bring. Interest, rent or gains you earn after becoming a Canadian resident must be reported in Canada.

Sources

Checked against these sources on October 5, 2026. Spotted something out of date? Tell us.

How to bring money from India to Canada: LRS, TCS, forms and timelines