The Liberalised Remittance Scheme (LRS) allows Indian residents to remit up to USD 250,000 per year for education, travel, and investments. From October 1, 2023, TCS rates for education remittances remain:
- 0.5% (Above ₹7 lakh) if financed by an education loan
- 5% (Above ₹7 lakh) if self-financed
🔹 Impact:
✔ Students on education loans benefit from a lower TCS rate (0.5%).
✔ Parents/self-financed students pay 5% TCS on amounts above ₹7 lakh.
✔ TCS is adjustable while filing Income Tax Returns (ITR).