Studying abroad is a dream for many Indian students, but financing education often means transferring large amounts overseas. To regulate this, Tax Collected at Source (TCS) applies to foreign remittances.
In the Union Budget 2025, the Government of India raised the threshold for applying TCS on foreign remittances under the Liberalised Remittance Scheme (LRS) from ₹7 lakh to ₹10 lakh per financial year, and fully waived TCS on remittances made via specified education loans.
If you’re planning to send funds for tuition, living expenses, or accommodation, it’s crucial to understand how much TCS applies, when exemptions are available, and how to claim refunds.
In this guide, we’ll break down the latest rules introduced in the Union Budget 2025, explain thresholds, compare loan-funded vs. self-funded remittances, and provide practical strategies to reduce the burden.
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