Regarding Sections 206CQ and 206CT

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Suresh Rehab (Querist)
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14 September 2025 One of my clients has bought certain foreign currencies in FY 2024 - 2025 through LRS under the above two sections .Because the total amount spent for this doesn't exceed the limit no TCS was collected. How to show this purchase and which ITR form should I use. The said client is coming under salary category. Thanks - K. Suresh.

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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14 September 2025 The purchase under the Liberalised Remittance Scheme (LRS) is not considered income, so it is not shown as income in the ITR.

If any TCS or TDS is reflected in Form 26AS under challan codes 206CQ or 206CT, such amounts can be claimed as tax credits during ITR filing, even if the threshold was not crossed and no TCS was actually deducted.

Mention the transaction in the "Schedule Foreign Assets" section only if the money was used to buy overseas assets (like shares, real estate, etc.), not for currency purchase for travel/remittance.

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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14 September 2025 Use ITR-1 for salaried individuals if no foreign assets or other income types exist. Claim any tax credit from TCS/TDS challan entries if present, but do not declare the purchase of foreign currency itself as income.
Use ITR 2 if any thing to declare in Schedule FA.

Suresh Rehab

Suresh Rehab (Querist)
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14 September 2025 Thanks for the excellent reply Sir! May God be with you always !

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Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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14 September 2025 Thank you very much for good wishes....

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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14 September 2025 Good Luck...

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