Under the Union Budget 2025, the government has decided to exempt TCS for remittances for education purposes in cases where education loan is taken from specified financial institutions.
TCS is tax collected by bank or authorised dealer from a person sending money overseas based on the purpose of the transfer. The threshold and rate for TCS is determined under the Liberalised Remittance Scheme (LRS) of the Reserve Bank of India (RBI). RBI has created the LRS policy for simplifying the process of sending money abroad.
The existing TCS is applied specifically to remittances exceeding Rs 7 Lakh under the LRS.
Delay for payment of TCS up to the due date would be decriminalised, the Finance Minister announced, adding that TCS on remittances, if a loan was taken for education, has been waived.
The Union Budget 2025 will have a focus on expansion of the Indian Institutes of Technology (IITs), medical colleges, Artificial Intelligence and promotion of education Indian languages. Finance Minister Nirmala Sitharaman presented Budget 2025 with a focus on development of poor, youth, farmers and women.
The Budget Session of Parliament, which commenced on Friday, will be conducted in two phases - the first started on January 31 and will conclude on February 13, while the second phase will begin on March 10 and end on April 4.
Ms Sitharaman is presenting her eighth consecutive Budget. The late Morarji Desai holds the record for the maximum number of Budget speeches -- ten -- but these were not consecutive. Former Finance Minister P Chidambaram has presented nine Budgets.
