Hi, I have read that the TCS on student loans changes to 0.5% from 5% which is the standard rate. Do I have to send some application across to the niyo team for this change of rate on my account?
Hey @Sahil_Batham! Welcome to Niyo Community!
TCS at the rate of 0.50% shall be collected on foreign remittance under LRS if the amount being remitted is towards education abroad and is out of a loan obtained from any financial institution in India. Here, you have to share certain documents with the bank.
- Approved loan sanction letter for educational purpose
- Statement for fund transfer to Niyo Global by SBM account/Loan account to ascertain the source of fund
- The tax amount, so applicable, will be refunded back to your account after validations from the bank side.
If the transaction has exceeded the regulatory limit of INR 7 Lakh from all sources, a refund of TCS will be effected only at the rate of 4.5%, after appropriating 0.5% towards TCS on Overseas Education, provided the above documents are emailed to the bank.
Can I get and email to whom I can send these documents?
Hey, I am informed that I must submit documents to the bank to change my TCS to 0.5% but I am unable to find an email or contact who will help me with this. When I emailed the bank they kept repeating that I’m supposed to share it with the bank but not providing me with any directions.
Hello @Sahil_Batham! Please do write to the Bank attaching the requested documents at
firstname.lastname@example.org or contact on 1800 103 3817 for further assistance. -WB