Tax collection at source on LRS to hit education abroad

The imposition of tax collection at source (TCS) at the rate of five per cent for education purpose under the liberalized remittance scheme (LRS) will hit the plans of students who are either planning to study abroad or are already studying in the universities and schools in a foreign location. The TCS is imposed on all LRS transactions above Rs 7 lakh including travel overseas.

Of the total of $11.34 billion remitted by Indians overseas in fiscal 2019 under the LRS, about $3.5 billion to foreign countries for education was remitted under the LRS in the fiscal 2019.  The