How it works
- 1
Confirm the amount and due date
Check the university's fee invoice or offer letter for the exact amount, currency and deadline.
- 2
Choose a channel and compare rates
Get quotes from your bank and one or two other authorised providers, looking at the exchange rate and every fee.
- 3
Submit Form A2 with PAN
Complete the LRS declaration, attach the university invoice and, if loan funded, the loan documents.
- 4
Keep the proof
Save the transfer confirmation and SWIFT reference for the university and your visa, and the TCS certificate for your tax return.
The Liberalised Remittance Scheme
Under the Reserve Bank of India's Liberalised Remittance Scheme (LRS), each resident individual can send up to USD 2,50,000 abroad in a financial year for permitted purposes, including education. The limit is per person, so a parent and a student can each remit within their own limit.
Education remittances cover tuition, hostel and living expenses, and exam or application fees. They are made through an authorised dealer bank or other RBI-authorised entity, with a declaration in Form A2 and your PAN.
Tax collected at source (TCS) on education remittances
TCS is not an extra tax. It is an advance collected by the bank that you can claim as credit against your income tax, or as a refund, when you file your return. It still affects your cash flow in the year you pay it.
Rules as they apply from 1 April 2026, following the Finance Act, 2026:
- Funded by an education loan from a specified financial institution: no TCS
- Funded from own funds: no TCS up to ₹10 lakh in a financial year, then 2 per cent on the amount above ₹10 lakh
- The ₹10 lakh threshold is counted across all your LRS remittances in the year, per remitter
- Remittances for other purposes, such as investments, attract a higher rate above the threshold
- The bank issues a TCS certificate; keep it to claim credit when you file your return
Ways to pay the university
- Outward remittance from your Indian bank directly to the university's account, online or at a branch
- Payment platforms used by many universities, which let you pay in rupees through an Indian bank
- Direct disbursement by your education loan lender
- International debit or credit card, for smaller payments such as application fees
What affects the real cost of a transfer
The quoted exchange rate matters more than the fee. Compare the rate you are offered with the interbank mid-market rate on the same day. Also check the bank's flat charge, any correspondent bank charge deducted on the way, and GST on the currency conversion.
Documents you will need
- PAN of the remitter
- Form A2 and the LRS declaration
- University offer letter or fee invoice with the bank details
- Student's passport, and visa once available
- Loan sanction or disbursement letter, if the remittance is loan funded
Staying safe
Always check the university's bank details against its official website or your offer documents. Fraudsters sometimes send emails that look like they come from a university, with changed account details. If anything looks different, call the university's finance office on the number listed on its website before paying.
How Moksh helps
We explain the documents and rules, help you estimate TCS for your situation, and check the university's payment instructions with you. We will introduce you to remittance providers if you ask, and you choose which one to use. We never handle your money ourselves.
Frequently asked questions
Is there a limit on how much I can send for education?
Under LRS, each resident individual can remit up to USD 2,50,000 in a financial year for permitted purposes including education. Amounts above this need RBI approval.
Will I lose the TCS amount?
No. TCS is credited against the remitter's income tax liability for the year. If you have no tax to pay, you can claim it as a refund when you file your return.
Is TCS charged on a loan-funded remittance?
No, not when the loan is from a specified financial institution and the remittance is for education. Tell your bank the remittance is loan funded and provide the loan documents.
Who should send the money: the student or a parent?
Either can. Many families remit from a parent's account since the parent has income against which TCS credit can be claimed. Consider the tax position before deciding.
How long does an international transfer take?
Usually one to three working days, though it can take longer around holidays or if an intermediary bank is involved. Pay well before the deadline.