How do we send money abroad for tuition fees?
Most families pay through their bank as an education remittance under the RBI’s Liberalised Remittance Scheme, sending fees straight to the university’s account. Tax collected at source (TCS) may apply above a threshold, and it can be claimed against your income tax. Check current rules with your bank and the official RBI and Income Tax pages.
"Sending lakhs abroad feels risky. What if we get the paperwork wrong?"
Banks handle education remittances every day. With the right documents and the university’s official details, it is a calm, traceable process.
- 1InvoiceUniversity’s official fee request
- 2Your bankEducation remittance form and documents
- 3ConversionRupees to the fee currency
- 4UniversityPaid to its own account, receipt issued
The ideas behind it, simply
- Liberalised Remittance Scheme (LRS): the RBI framework under which residents send money abroad, including for education.
- Education remittance: a purpose code your bank uses when you pay fees or living costs for study.
- TCS (tax collected at source): an amount the bank may collect on large remittances. It is not an extra fee; it can be adjusted against your income tax. Whether it applies, and how much, depends on current rules and on whether the money comes from an education loan.
- Exchange rate and charges: banks and providers differ. Ask for the total cost in rupees before you send.
Staying safe
- Pay only to bank details on the university’s official invoice or portal.
- Confirm by calling or emailing the university from its official website if details change.
- Keep every receipt for the visa file and your tax return.
Fee payment checklist
Common mistakes
- Paying to an account from an email that was not checked with the university.
- Using a non-education purpose code.
- Forgetting to claim TCS when filing income tax.
- Leaving the payment to the last day.
Questions families ask
Does an education loan change TCS?
The rules treat loan-funded education remittances differently. Ask your bank and check the current Income Tax rules.
Can Unithink tell us the TCS rate?
We do not quote rates because they change. Your bank and the official Income Tax pages have the current rule.
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