The Union Government of India will not attach 20% TCS on foreign remittances for education expenses of study abroad students. This relief is for overseas funds up to INR 7 lakh in a financial year.
However, 0.5% TCS will be attached to forexabove INR 7 lakh. It is only valid for funds transferred for education purposes. Additionally, parents of international students can avoid 0.5% TCS by using the bank accounts of immediate family members.
These TCS rates on outward remittances will be applicable from the 1st of July 2023. It was introduced in the Union Budget 2023-24. The Union Finance Minister, Ms Nirmala Sitharaman, presented it in the Parliament of India.
Furthermore, the Union Budget 2023 also states that 20% TCS will be applicable to overseas financial investments, international money transfers, foreign trips, and other remittances. Additionally, forex cards will also attract a TCS of 20%.
How To Send Money Internationally for Education Without Paying 0.5% TCS?
As the Government of India will attach 0.5% on outward remittances above INR 7lakh for education, parents can opt for different ways to avoid paying the TCS. Here are ways in which parents can send money internationally for education without paying 0.5% TCS:
- Parents have to establish that the foreign remittance is for study abroad students.
- Additionally, remittances must be sent under the Liberalised Remittance Scheme (LRS).
- In addition, parents need to submit university acceptance letters, foreign rental agreements, and other related invoices.
- Furthermore, the family of international students can send money from accounts of immediate family members such as fathers, siblings, mothers, etc.
Stay in touch with Fly Finance News Desk to get the latest news on study abroad loans, international money transfers, and overseas banking services.
