Study Abroad Money Transfer: Send Money Internationally For Education Without Paying 0.5% TCS

Send Money Internationally For Education Without Paying 0.5% TCS

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 international money transfers above 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. 

About Fly Finance News Desk

Leave a Comment

Top 5 Benefits of SBI Zero Balance Account for Students Eligibility Criteria for Aditya Birla Capital Education Loan to Study Abroad Auxilo Education Loan for Wards of Defence Personnel Steps Involved In Canara Bank Education Loan Processing Time IBDI Education Loan Documents Required Checklist Education Loan Interest Rate Comparisons: Banks vs. NBFCs Indian Army Education Loan to Study Abroad: Know It All Here Process and Ways to Obtain Gap Certificate for Education Loan 10 Fully Funded Scholarships in Canada How To Make Online Discover Bank International Wire Transfer?

Send Money Abroad in <15 mins


Request a callback


Get an education loan at the lowest interest rate


Thank you! Your call request has been submitted

Our team will connect with your shortly

aero Confused which education loan is the best for you?