The Great Indian Remittance Shift: Why Education Financing Defied the TCS Crunch in July 2025

Affluence Advisory | Last updated: 24 November 2025

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In July 2025, India's outward remittances dropped by 11% year-on-year, largely due to increased Tax Collected at Source (TCS) impacting travel and investments. However, education-related remittances saw a significant rebound, highlighting the strong demand for overseas learning and the effectiveness of TCS exemptions for loan-funded education. This shift reveals how Indian remitters are prioritising essential expenses over discretionary ones in response to new tax policies.

The financial landscape of India's cross-border transactions is undergoing a profound transformation. Recently, the Reserve Bank of India (RBI) revealed a compelling paradox on the Liberalised Remittance Scheme (LRS) for July 2025. While overall outward remittances declined by 11% year-over-year (Yo

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Affluence Advisory

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Why Affluence Advisory for any Tax Compliance services? Affluence Advisory Pvt Ltdis a multi-disciplinary consulting and compliance firm that is managed by a specialized team of Chartered Accountants, Company Secretaries, Corporate Lawyers, and Other Professionals who are committed to providing a quality experience ... Read more

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