TCS on Foreign Remittance Calculator
When you send money abroad for education, the bank may collect TCS. This calculator shows how much, based on how much of your remittance is funded by an education loan and how much is self-funded.
For education, remittances funded by a loan from a notified financial institution carry no TCS. Self-funded education remittance is taxed at 5 percent only on the amount above 10 lakh in a financial year. TCS is not a cost, it is a credit you adjust or claim back when you file your return.
How TCS on education remittance works
Under the Liberalised Remittance Scheme, foreign education remittances funded by a loan from a notified financial institution carry no TCS. Self-funded education remittance is taxed at 5 percent, and only on the amount above 10 lakh in a financial year. The full rules, including how to flag a loan-funded remittance so the bank does not apply TCS by default, are in the post on TCS on education loan and foreign remittance.
TCS is a credit, not a cost
The TCS the bank collects is not money lost. It is adjusted against your income tax, or refunded when you file your return. The real impact is cashflow: the money sits with the government for several months. A loan-funded remittance skips that gap entirely. For the funding side of the decision, see education loan versus self-funding.