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The Union Budget 2025-26, presented by Finance Minister Nirmala Sitharaman, brings significant changes for Indian students aspiring to study overseas. A key highlight is the revision of the Tax Collected at Source (TCS) rates on foreign remittances, which directly impacts the financial planning of these students.
Understanding the Revised TCS Rates
Previously, under Section 206C(1G) of the Income Tax Act, authorized dealers collected TCS at varying rates depending on the nature of the educational loan and the amount remitted. The new budget has streamlined these rates to ease the financial burden on students and their families.
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Impact on Students
The reduction in TCS rates is expected to make overseas education more accessible by lowering the upfront tax costs associated with remittances. This move aligns with the government’s focus on strengthening the country’s education and skill development sectors.
While the budget offers relief for students aiming to study abroad, it also emphasizes strengthening domestic education. The government has allocated Rs 1.48 lakh crore for education, employment, and skilling. This includes financial support for loans up to Rs 10 lakh for higher education in domestic institutions, with e-vouchers and interest subvention benefits.
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The Union Budget 2025-26 introduces measures that could significantly reduce the financial burden on Indian students planning to study abroad. By revising TCS rates on foreign remittances and bolstering support for domestic education, the government aims to make quality education more accessible to all.
FAQs
TCS is a tax collected by the seller from the buyer at the time of sale. In the context of foreign remittances for education, authorized dealers collect TCS when facilitating the transfer of funds abroad.
The revised rates lower the tax burden on students and their families when sending money abroad for educational purposes, making overseas education more affordable.
Yes, the government provides financial support for loans up to Rs 10 lakh for higher education in domestic institutions, along with e-vouchers and a 3% interest subvention.
For comprehensive information, refer to official government releases or consult with financial advisors familiar with the latest budget provisions.
For more insights on exploring new updates in international education trends, visit Leverage Edu News Updates.
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