Understanding Impact of New TCS Rule on Educational Expenses for Students Studying Abroad

Rashmi | Last updated: 25 September 2023

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The 2023 budget introduced changes to the Tax Collection at Source (TCS) rate for foreign remittances, increasing it to 20% for select transactions from October 1, 2023. However, this higher rate does not apply to educational expenses. For remittances under £7 lakh for education, no TCS is levied. Above this limit, a 0.5% TCS applies if funded by an education loan, or 7% if not. Additional living expenses for students abroad also fall under educational remittance rates, but documentation is key.

Introduction The recent budget for 2023 has brought about changes to the Tax Collection at Source (TCS) rate for foreign remittances under the Liberalised Remittance Scheme (LRS). Specifically, the TCS rate for select transactions has increased from 5% to 20%, with the new rates taking effect fro

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About the Author

Rashmi

business

I am a Chartered Accountant with over 2 decades of experience in Auditing, Taxation, Accounting, Due diligence. I am currently a Managing Partner at RRL Global Services. I can be reached at rrlglobal @ yahoo.com or @ 9811757230

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Understanding Impact of New TCS Rule on Educational Expenses for Students Studying Abroad

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