If my parents send money to my account and I pay my college fees (in USD), then can they claim the tcs in next financial year if the transaction is above 7lacs?
Hey @yash_chhadva! 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. The bank will validate them and do the needful.
Regards,