💸 SEND MONEY ABROAD FOR STUDENTS · LRS, TCS AND FOREX
Same ₹20 lakh fee. Two very different bills.
The fee you see is rarely the fee you pay. Here is how two routes for one tuition payment can compare.
ROUTE A
“Zero fee” transfer
Transfer fee₹0Rate markup (1.5%)₹30,000Hidden cost₹30,000
ROUTE B
Wire close to the mid-market rate
Transfer fee₹2,000Rate markup (0.3%)₹6,000Hidden cost₹8,000
Illustration only. Real fees and margins vary by provider and by day.
Sending money abroad is one of the first big tasks after you get an admit. It is also where students lose the most money without noticing: a poor exchange rate on a ₹20 lakh tuition payment can quietly cost ₹40,000 or more. Fortunately, the rules are simple once you see the map.
This guide explains how to send money abroad for students from India: the rules you must follow (LRS and TCS), the ways to pay tuition and living costs, how a bank account abroad fits in, and how to keep fees low. If you are still working out funding, read our education loan guide first.
How to send money abroad for students: the money map
| Money need | Usual route | What to watch |
|---|---|---|
| 🎓 Tuition and fees | Bank wire or a university-approved payment platform | Exchange rate markup, and TCS once you cross ₹10 lakh |
| 🧳 Living costs, first months | Forex card plus some cash | Cash withdrawal fees |
| 🔁 Ongoing monthly support | Transfer app or bank remittance to your account abroad | The fee plus the rate, not the fee alone |
| 🔒 Blocked account or proof of funds | Country-specific route | Needs to be done before the visa |
💡 Every route has two costs: the visible fee and the hidden exchange rate markup. So always compare the total in rupees that reaches the other side.
LRS and TCS: the two rules every student must know
RULE 1
LRS: how much you can send
The Liberalised Remittance Scheme lets each resident individual send up to USD 250,000 abroad in a financial year (April to March) for permitted purposes, and studies abroad is one of them. In addition, you need a PAN to remit under LRS.
RULE 2
TCS: tax collected at source
When you remit, your bank may also collect a small tax called TCS. However, it is not a permanent extra cost. Instead, it is advance tax, which the person who remitted can claim back as credit when they file their income tax return.
Budget 2026 cut the TCS rate on self-funded education payments from 5% to 2%. So from 1 April 2026 (financial year 2026-27), the education rules look like this:
| Education remittance (per remitter, per financial year) | TCS |
|---|---|
| Total LRS remittances up to ₹10 lakh | Nil |
| Above ₹10 lakh, funded by an education loan from a financial institution | Nil |
| Above ₹10 lakh, funded from personal or family savings | 2% on the amount above ₹10 lakh (it was 5% until 31 March 2026) |
| For comparison: other LRS purposes above ₹10 lakh | 20% |
The ₹10 lakh threshold is shared across all LRS remittances by the same person in the financial year, not just education.
🧮 Worked example
You remit ₹14 lakh from family savings in FY 2026-27, with no other LRS remittances that year. TCS applies only to the ₹4 lakh above the threshold, at 2%. Therefore, that comes to ₹8,000, which you can claim back as tax credit.
How to recover TCS
1
Ask the bank for the TCS certificate: Form 133 under the Income-tax Rules, 2026 (formerly Form 27D).
2
Check that it shows in your annual tax credit statement and in your AIS on the income tax e-filing portal.
3
Finally, claim it when the remitter files their return. Any excess over the tax payable is refunded.
Similarly, salaried parents can declare TCS to their employer, so that monthly salary TDS is reduced accordingly.
Ways to keep TCS low
- Use an education loan from a bank or other financial institution for the large payments, since loan-funded education attracts no TCS.
- Let each parent use their own threshold. The ₹10 lakh limit applies per person, so each parent remitting from their own account gets their own ₹10 lakh.
- Split payments across two financial years if your timeline allows, for example one instalment in March and the next in April.
⚠️ Tax rules change often. We checked these figures against the Income Tax Department and the Budget 2026-27 documents in October 2026. Even so, confirm the current rate with your bank or a chartered accountant before you pay.
Ways to send money abroad for students, compared
Each route suits a different job. Here is how the main ways to send money abroad for students compare, both for students and for parents.
| Route | Best for | Typical speed | Watch out for |
|---|---|---|---|
| 🏦 Bank wire (SWIFT) | Large tuition payments | 1 to 4 business days, longer with intermediary banks | A transfer fee (often ₹500 to ₹2,000 plus GST), GST on conversion, the rate margin and intermediary charges |
| 🎓 University payment platform (for example Flywire) | Tuition, when the university supports it | 1 to 3 days | Rates vary, so compare with your bank quote |
| 📱 Online transfer apps (for example Wise) | Tuition and monthly support | Hours to 2 days | Check that the app supports education payments and loan verification |
| 💳 Forex card | Living costs and first-week expenses | Instant at the point of use | Cash withdrawal and reload fees |
| 📄 Demand draft | Rare, only if the university asks | 10 to 15 days | Slow and hard to track |
| 🆘 Credit card | Emergencies only | Instant | Interest and fees make it very expensive for big sums |
THE HIDDEN COST
Compare the final rupee amount, not the fee
₹20,000
what a 1% worse exchange rate costs on ₹20 lakh
₹2,000
a typical flat wire fee, which is often the smaller cost
How to choose a route in five steps
- Get two or three quotes in rupees. Ask for the exact amount the university will receive, not just the fee.
- Check the rate against the mid-market rate on a rate site. In other words, the gap is your hidden cost.
- Confirm the university accepts the route. In fact, many list preferred payment partners on their fee page.
- Keep documents ready: passport, PAN, offer letter or fee invoice, and the loan sanction letter if you have one. Banks ask for the purpose of the remittance, and for education the usual purpose code is S0305 (travel for education, including fees and hostel expenses), but confirm it with your bank.
- Pay a few days before the deadline. Otherwise, a late payment can cost you your seat or delay your I-20 or CAS.
🔒 Rate locks: some providers let you lock a rate for a few days. That can help if the rupee is moving fast. However, check the fee for locking before you use it.
YOUR FIRST WEEK ABROAD
Opening a bank account abroad and cutting transfer costs
Once you arrive, you will need a local bank account for rent, pay from part-time work and daily spending. As a result, most students open one in the first week.
In the UK, the US and Canada, many banks offer student accounts with no monthly fee. Germany, on the other hand, usually needs an address registration first. Requirements differ, so check the bank’s website before you land.
What to carry to the bank:
🛂
Passport and visa
📩
Offer letter or enrolment confirmation
🏠
Proof of address, such as a university letter or tenancy agreement
🪪
Student ID, once issued
🇩🇪 Going to Germany? Most students show proof of funds through a blocked account, currently €11,904 for the first year (€992 a month). A scholarship or a formal obligation letter from a sponsor living in Germany are accepted alternatives. Either way, sort it out before you apply for the visa.
Smart ways to send money abroad for students for less
- Send fewer, larger transfers instead of many small ones, when the provider charges a flat fee.
- Spend from the account abroad to avoid foreign transaction fees on every swipe.
- Carry a little cash and a forex card for the first few days, not thousands.
- Set a monthly budget so you know the exact amount to transfer each month. Our pre-departure checklist has a section on this.
- Avoid airport currency counters, because their rates are usually among the worst.
For parents: how to send money abroad for students every month
When you send money abroad for students every month, pick one reliable route and stick to it. Also keep the bank receipts, because they help with tax credit and any later visa questions about funds. Also remember that the LRS limit and the ₹10 lakh TCS threshold are per person, so a parent sending from their own account uses their own limits.
Common mistakes, scams and a final checklist
💸 Mistakes that cost money
- Paying the first quote without comparing
- Ignoring the exchange rate and looking only at the fee
- Forgetting the TCS credit when filing returns
- Sending money to a personal account when the university asked for its official payment portal
- Waiting until the last day before the fee deadline
🎣 Scams to avoid
- Fake fee emails that look like they come from the university but ask you to pay a new account. Always confirm bank details on the official website or by calling the admissions office.
- Agents asking for cash or a payment to a personal account.
- Urgent “last chance” rate offers from unknown apps.
✅ Your payment checklist
- Confirm the fee amount and deadline in writing
- Check how the university wants to be paid
- Get two or three quotes in rupees
- Keep the loan sanction letter and PAN ready
- Make the payment and save the receipt
- Download the TCS certificate if TCS was charged
- Order a forex card for the first month
- Plan the monthly transfer route
FAQs: how to send money abroad for students
Is TCS charged on every education remittance?
No. From 1 April 2026, no TCS applies until a person’s total LRS remittances cross ₹10 lakh in a financial year. Above that, payments funded by an education loan from a financial institution attract no TCS, while self-funded payments attract 2% on the amount above ₹10 lakh.
Can I get the TCS back?
Yes. TCS is advance tax, so the remitter claims it as credit when filing their return, and any excess is refunded. Salaried remitters can also declare it to their employer to reduce salary TDS.
Which is cheaper, a bank wire or a transfer app?
It depends on the day and the amount, so there is no single answer. Compare the final rupee cost of each, including the exchange rate, rather than the fee alone.
Do I need a forex card if I have a bank account abroad?
It helps in the first week, before the account is active. After that, however, most students use the local account.
How early should I pay tuition?
At least a week before the deadline, since bank holidays and compliance checks can add days.
Can both parents send money for the same student?
Yes. The USD 250,000 LRS limit and the ₹10 lakh TCS threshold apply per person, so each parent remitting from their own account has their own limits.
Need help planning your payments?
Learner Aid helps students with admissions, funding and pre-departure planning. If you are unsure how to pay your first fee, our counsellors will walk you through the steps.
Sources
- RBI: Liberalised Remittance Scheme FAQs
- Income Tax Department: Section 394, Income-tax Act 2025 (TCS)
- Union Budget 2026-27: Budget speech
- Income Tax Department: Form 133 (TCS certificate) FAQs
- SBI: Charges for retail remittance transactions (PDF)
- German Missions in India: Student visa and blocked account
- BookMyForex: Purpose codes for outward remittances
Tax and remittance rules change. Confirm current rates and limits with your bank, a chartered accountant or the official notification before you pay.
