Pursuing higher studies from abroad universities is a dream come true and exciting moment for many of the aspiring students. Overseas studies comes with an opportunity to live abroad and a chance to explore the culture of a foreign country . This is one tempting fact that makes the students choose an abroad country for their higher studies. While studying in overseas countries, send money abroad for university fee payments becomes a necessity. By opting for overseas studies, a student can mingle with people from different countries, regions, culture, language etc. This will make them grow as a global citizen.This short stay or journey to a new country will make the students self-reliant.
Overseas studies are getting a great momentum nowadays, and many students are trying to secure an admission abroad. Whenever they are in need of money, they call their parents or relatives and they later send money to the student’s personal foreign account for their immediate needs.
University fee payments can be sent to the University account number or their personal account. LRS is a boon for the close relatives in terms of sending money to their children studying abroad.
Blood relative of a student can send up to USD 2.5 Lakh in a financial year without any prior approval from RBI under the Liberalized remittance scheme.Students can open foreign account, and they can open NRI/NRO account also.Blood relatives of the students can send money to this foreign account.
Money can be sent for education purposes to a student account or in the name of the University or college based on the supporting documents. Fund can also be sent as Gift or family maintenance to this account.
Up to 10 lakh can send without TCS and above that in a FY will be applicable of 5 % TCS. For example :- If a person remitting 11 Lakh in a FY, 5 % TCS on 1 lakh to be paid.
Rules to remember while you send money abroad for education purpose
- Select an RBI authorized AD 1 or AD 2 dealer to send money abroad
- Amount to be transferred to the account of the dealer must be from the bank account of the remitter.
- TCS will apply if the amount remitted is above 10 Lakhs.
- If the remittance is made out of the loan taken for education purpose, TCS would be 0.5% of the money remitted.
KYC Documents Required to send money abroad from India:
- Duly filled and signed A2 Form
- Pan Card
- Valid passport
- Student VISA
- University Offer letter
