If you are planning to study abroad for higher studies, the new union budget allocation for 2023 has proposed Tax Collected to 20% whereas TCS of 5% is available for international remittances above 7 lakhs. So, for example, you can convert 10 Lakh to USD and from your bank account 20% will be deducted as TCS which comes out to be Rs 2 Lakh this amount can later be adjusted or Claimed in an Income Tax refund (ITR). There will also be an increase in rate of collection of tax from 5% to 20%. These new provisions will come into effect from 1st July 2023.
There is a 6% increase in GDP education budget allocation. Currently, stakeholders are looking for funds for edtech tax subsidies, for better skills development and better digital infrastructure. It is expected to utilise 100% of the allocated budget in order to maintain high-quality teaching staff and also an improved learning environment.
Union Budget 2023: Education Tax Subsidy For International Students
Because the high tax bracket is a barrier the education sector will be affected. Additionally, relatively there will be high demand for all the tools required for education like digital instruments including TV, Smart Phones, Laptops and Tablets because of the tax subsidy. Currently, these electronic goods are 28% GST whereas online classes, edtech services and private education are 18% GST. However, due to an increase in Union Budget 2023 education sector international investment is highly expensive.
This infers that the digital era has processed many developed countries. This will lead universities and institutions to start talking about how plagiarism can be prevented and how students can use Artificial Intelligence (AI) tools in their education.
Furthermore, the major challenge will be to create stable and decent digital infrastructure in cities where students who are opting for online education specifically in two or three-tier universities. Moreover, there will be increased funding for investors, startups and developers for access to resources, and mentors.
Follow Leverage Edu News Updates for the latest information about study abroad programs.