{"id":4098,"date":"2023-05-19T13:08:10","date_gmt":"2023-05-19T07:38:10","guid":{"rendered":"https:\/\/fly.finance\/blog\/?p=4098"},"modified":"2023-05-19T21:55:36","modified_gmt":"2023-05-19T16:25:36","slug":"study-abroad-new-tcs-rates-from-july-2023-for-foreign-remittances-news-2023-05","status":"publish","type":"post","link":"https:\/\/fly.finance\/blog\/news-updates\/study-abroad-new-tcs-rates-from-july-2023-for-foreign-remittances-news-2023-05\/","title":{"rendered":"Study Abroad: New TCS Rates from July 2023 for Foreign Remittances"},"content":{"rendered":"\n<p>Starting 1st of July 2023, Indian students will have to pay 20% <a href=\"https:\/\/leverageedu.com\/blog\/tax-on-foreign-remittance\/\"><strong>Tax Collection at Source (TCS) for outward remittances<\/strong><\/a> under the Liberalised Remittance Scheme (LRS). Under the LRS of the government of India, the new TCS will apply to <a href=\"https:\/\/fly.finance\/forex\"><strong>overseas funds transfers<\/strong><\/a>, foreign trips, overseas investments, and all other foreign transactions.<\/p>\n\n\n\n<p>However, <a href=\"https:\/\/leverageedu.com\/blog\/loans-to-study-abroad\/\"><strong>study abroad education loans<\/strong><\/a> and medical expenses in foreign lands will not be included in the new scheme. Under LRS, money remitted for both these essential services will attract only 0.5% TCS. This percentage will be applied to funds transferred beyond INR 7 lakh.&nbsp;<\/p>\n\n\n\n<p>Furthermore, the <a href=\"https:\/\/leverageedu.com\/learn\/union-budget-2023-news-2023\/\"><strong>2023 Budget<\/strong><\/a> also stated that 5% TCS will be levied on the l<a href=\"https:\/\/leverageedu.com\/learn\/how-much-will-it-cost-to-study-abroad\/\"><strong>iving expenses of study abroad Indian students<\/strong><\/a>. Parents must show proof of <a href=\"https:\/\/leverageedu.com\/blog\/expenses-covered-in-education-loan\/\"><strong>education expenses<\/strong><\/a> of their wards before making an overseas transfer to avoid paying 20% TCS.&nbsp;<\/p>\n\n\n\n<p>Another clause of the new Liberalised Remittance Scheme is that there is no Tax Collection at Source on outward remittances below INR 7 lakh.&nbsp;<\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"768\" src=\"https:\/\/flyblog.fly.finance\/wp-content\/uploads\/2023\/05\/19130654\/Master-2-1024x768.png\" alt=\"Study Abroad: New TCS Rates from July 2023 for Foreign Remittances\n\" class=\"wp-image-4105\" srcset=\"https:\/\/flyblog.fly.finance\/wp-content\/uploads\/2023\/05\/19130654\/Master-2-1024x768.png 1024w, https:\/\/flyblog.fly.finance\/wp-content\/uploads\/2023\/05\/19130654\/Master-2-300x225.png 300w, https:\/\/flyblog.fly.finance\/wp-content\/uploads\/2023\/05\/19130654\/Master-2-768x576.png 768w, https:\/\/flyblog.fly.finance\/wp-content\/uploads\/2023\/05\/19130654\/Master-2-150x113.png 150w, https:\/\/flyblog.fly.finance\/wp-content\/uploads\/2023\/05\/19130654\/Master-2.png 1200w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><figcaption class=\"wp-element-caption\">Source: Taxman and Business Insider India<\/figcaption><\/figure>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-ways-to-send-money-abroad-under-lrs\"><span id=\"ways-to-send-money-abroad-under-lrs\">Ways to Send Money Abroad under LRS<\/span><\/h2>\n\n\n\n<p>Parents of study abroad students can follow these steps to make international money transfers under LRS:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Visit the bank<\/li>\n\n\n\n<li>Fill up the A-2 Form<\/li>\n\n\n\n<li>Mention the purpose of outward transfer<\/li>\n\n\n\n<li>Attest the Declaration Form<\/li>\n<\/ul>\n\n\n\n<p>It is essential that parents provide sufficient information to establish that their child is pursuing higher education abroad. This will provide a hefty TCS exemption of 15% on foreign remittances.&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-other-transactions-under-lrs\"><span id=\"other-transactions-under-lrs\">Other Transactions Under LRS<\/span><\/h2>\n\n\n\n<p>The Government of India\u2019s Liberalised Remittance Scheme also includes the following transfers:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><a href=\"https:\/\/fly.finance\/blog\/money-transfer\/transferring-money-internationally-between-banks\/\"><strong>International money transfers between banks<\/strong><\/a><\/li>\n\n\n\n<li>Overseas transfers via <a href=\"https:\/\/fly.finance\/forex#joinWaitList\"><strong>Forex cards <\/strong><\/a>and debit cards<\/li>\n<\/ul>\n\n\n\n<p>For the latest updates about <a href=\"https:\/\/fly.finance\/\"><strong>international money transfers<\/strong><\/a>, stay in tune with <a href=\"https:\/\/fly.finance\/blog\/news-updates\/\"><strong>Fly Finance News Desk<\/strong><\/a>.&nbsp;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>According to the Union Budget of India 2023, the TCS for foreign remittances under LRS from the 1st of July 2023 will be 20%. TCS on education loans remains at 0.5%.<\/p>\n","protected":false},"author":5,"featured_media":4103,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[260],"tags":[],"class_list":["post-4098","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news-updates"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v27.2 (Yoast SEO v27.2) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>Study Abroad: New TCS Rates from July 2023 for Foreign Remittances I Fly Finance<\/title>\n<meta name=\"description\" content=\"According to the Union Budget of India 2023, the TCS for foreign remittances under LRS from the 1st of July 2023 will be 20%. 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