These remittances are usually made under pressure, on a short timeline, by someone with a great deal else to think about. The rules are more accommodating here than elsewhere — a lower TCS rate, a separate allowance for the person travelling with the patient — and knowing that in advance saves both money and time.
What you may send
- Treatment costs fall under the LRS ceiling of USD 250,000 per person per financial year.
- Where a hospital's estimate exceeds that, more may be remitted against the estimate — this is one of the few places the ceiling can be exceeded, and it needs the estimate in writing.
- A person accompanying the patient has a separate allowance for maintenance while abroad, distinct from the treatment cost itself.
The tax position is better here
Medical remittances attract TCS at the concessional 5% above the ₹10 lakh annual threshold, rather than the general 20%. On ₹30 lakh of treatment costs that is the difference between ₹1,00,000 and ₹4,00,000 collected — recoverable either way, but a very different amount of money to be without while a family is managing a hospital bill.
The concessional rate depends on the remittance being correctly coded as medical, which depends on the estimate being attached. It is not applied automatically.
Documents
- 1An estimate or invoice from the hospital or clinic abroad, on their letterhead, naming the patient.
- 2A letter from a doctor in India recommending treatment abroad, where the hospital or bank asks for it.
- 3PAN and passport for the remitter; the patient's passport where they are travelling.
- 4The A2 declaration with the medical purpose code — S0304.
- 5The beneficiary bank details of the hospital, including SWIFT and IBAN or routing number.
Moving quickly
- Ask the hospital for its bank details and estimate in one email, at the start. Chasing them separately is what costs a day.
- Send under OUR so the hospital receives the exact amount, rather than an amount short by correspondent charges that then needs a second transfer.
- Tell the dealer at the outset that this is a medical remittance. It changes the documentation and the TCS rate, and saying so late means redoing the file.
- Where treatment is staged, remit in tranches against invoices rather than one large advance. It is easier to document and easier to recover if plans change.
