What percentage of TCS is applicable on education payments?

Under LRS, payers can send up to Rs 10 lakh per year without being subject to TCS for education tuition or fees. The Rs 10 lakh threshold for LRS is a combined threshold, applicable to TCS on all LRS transactions, regardless of the purpose of the remittance.

For education payments, there are two applicable TCS rates which apply to the remitted amount above the INR 10 lakh threshold:

1. Nil if the cross-border payment is funded through an Indian bank loan
2. 5% if the cross-border payment is self-funded (private)