TCS on fees and living costs sent abroad for study, with or without an education loan
Estimates only, not financial advice. What you type stays on your device. Checked against sources on 30 Oct 2026.Money sent abroad for education is charged TCS at 2% of the part above ₹10 lakh in a tax year from 1 April 2026, down from 5%. If the money comes from an education loan taken from a financial institution, nothing is collected at all. Enter the fees and living costs you are sending to see the TCS, and claim it back in your income-tax return.
FY 2026-27 · Rates and rules read from the sources listed on this page (the earliest on 30 Oct 2026); they may have changed since.
The page opens on "Education, own funds"; choose the education loan option if a loan pays the fees.
Enter the fee amount you are sending.
Enter what you have already sent under LRS this tax year.
Read the TCS collected and Leaves your account.
A resident individual can send money abroad under the Reserve Bank's Liberalised Remittance Scheme, up to USD 2,50,000 a financial year. When the amount crosses ₹10 lakh in a tax year, the bank collects tax at source (TCS) on the part above it. This calculator works out that TCS by purpose and shows what will leave your account.
| Purpose | TCS |
|---|---|
| Education from an education loan | Nil |
| Education from own funds, medical treatment | 2% above ₹10 lakh |
| Investment, gifts, family maintenance, other | 20% above ₹10 lakh |
| Overseas tour package | 2% of the whole price |
The threshold is for the year, not each payment. Enter what you have already sent this tax year, and only the part of this remittance above the ₹10 lakh left is taxed. A bank sees only what went through it, so a second bank may collect less; the tax owed is settled in your return either way.
The rest of the article, and all 6 questions about LRS TCS Calculator, are on the LRS TCS Calculator page.
Under section 394(1) of the Income-tax Act, 2025, as amended by the Finance Act, 2026: nil on education loans from a financial institution, 2% above ₹10 lakh for education from own funds or medical treatment, 20% above ₹10 lakh for other purposes, and 2% of the whole price on overseas tour packages.
No, for remittances under the Liberalised Remittance Scheme, whatever the purpose. The ₹10 lakh counts everything sent in the tax year, so a ₹4 lakh remittance after ₹8 lakh already sent is taxed on ₹2 lakh. Overseas tour packages are the exception: from 1 April 2026 the seller collects 2% from the first rupee.
No. Section 394(4)(b) says the bank shall not collect TCS when the amount sent is a loan from a financial institution for pursuing education. Fees paid from your own savings are different: they are charged 2% on the part above ₹10 lakh in a tax year from 1 April 2026, down from 5% before that.
The Reserve Bank's Liberalised Remittance Scheme allows a resident individual up to USD 2,50,000 in a financial year, April to March, for permitted purposes. TCS is a separate question: it is collected above ₹10 lakh in a tax year, well below that limit, and the calculator works it out in rupees.
Rates and rules change; check the source before you rely on a figure.
Still stuck? Ask about LRS TCS Calculator and anybody who knows can answer. No account needed.
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On the related tools: GST Inclusive Calculator – Split a price that already includes GST into value and tax · TDS on FD for Senior Citizens – Whether a bank deducts TDS on a senior citizen’s FD interest under the ₹1 lakh limit.
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