Who is Exempt From Foreign Remittance Tax?

MD Posted by: Mihir Dutta
• 02 September, 2025
1 Reply

Here are some of the foreign remittance taxes exempt from TCS given below: For educational loans from banks and any registered RBI financial institutions.  If you take an educational or medical purpose loan of under 10 lakh INR.  For International credit card payments.

Tags : Exempt From Foreign Remittance Tax

  • Vaishnavi Ansari 05 September, 2025

    Here are some of the exceptions to the TCS rules from October 2023: 

    • If the money is transferred abroad for educational purposes gets exempt from TCS for a maximum limit of INR 7 lakhs. If this amount is increased, then a TCS of 0.5% will be charged on the funds that are provided by a loan. 
    • If the expenses are made or covered by them through different income sources, then it will result in 5% TCS and more if this goes beyond the maximum threshold. 
    • If you failed to provide a PAN card, then it will also impact and result in your TCS rate increase. Furthermore, for the Education loan transfers exceeding the given cap, a TCS rate increase of up to 5%, and regular income sources increase to 10%. 
    • For the foreign remittance up to INR lakh for medical coverage and expenses are exempt from TCS, and if the transaction surpasses the actual limit, then you are subject to a 0.5% TCS charge.

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