The LRS allows parents to send money to meet the education related expenses of their children studying abroad. Under LRS, parents can send up to $ 250,000 during a financial year. If parents want to send more money than the fixed limit, then they will have to get permission from the Reserve Bank of India.
How to apply for TCS to send money for education in the country? Under LRS, parents can send up to Rs 7 lakh per year for education related expenses under TCS. If the dispatch for foreign education is Rs. 7 lakhs and a loan from an approved financial institution is financed through loans, 0.05 percent TCS will be imposed. Any dispatch of more than Rs 7 lakh for education purpose, which has not been obtained through loan, will have a 5 percent TCS.
Suppose you have sent Rs 9,00,000 abroad for education purpose under LRS in a financial year. If you do not get money through education loan, 5 percent TCS will be imposed on an amount of more than Rs 7 lakh. So, in this case the TCS amount {(9,00,000-7,00,000)*5/100} = Rs. 10,000 will be.
These are the current rates of TCS to send money through LRS for child education. High TCS rates will be applicable from 1 October 2023. However, if the expenditure is considered for educational purpose, there will be no change after this deadline. However, this cannot be said about other related expenses that do not clearly fall under the category of education expenses.