How TCS will impact international students and foreign travel from October 1

livemint.com:

₹7 lakhs per financial year per individual will be restored for TCS on all categories of LRS payments through all modes of payment, regardless of the purpose. In an exclusive interview, Virender Bisht, Co-founder & CTO at Niyo, explains all that one needs to know about the new TCS rate and how it will impact financing education and buying international travel packages. As per the Central government’s June 30, 2023, notification, remittances for education include: The regular remittance by students for education purposes is not expected to have any major impact post October 1 TCS changes.

However, multiple remittance in a year to cover day to day expenses can be cumbersome and expensive so students take Indian international cards (for example, Niyo Global cards) which have no TCS applicable up to aggregate Rs. 7 lakhs in a financial year and come with zero forex markup charges. Pursuing international education can be an expensive affair.

Most of the payments are made on international portals hence attracts forex fees. The way to navigate this for students is to get zero forex international cards that have no TCS applicable up to aggregate Rs. 7 lakhs in a financial year and come with zero forex markup charges.

For parents remitting money to their children abroad, ensure that you understand what falls under TCS. Keep track of transactions, use the correct LRS code and categorise them correctly while remitting. You can file for TCS in ITR, hence it’s important to keep a track of necessary forms/ documents.