Govt Exempts TCS on Foreign Education Loan Remittances in Union Budget 2025

In the Union Budget 2025, the government has exempted a specified TCS on education loans disbursed in a foreign country. This exemption is strictly provided when the education loan is drawn from specific financial institutions and only for remittance purposes.

TCS is a tax collected by banks or authorized dealers from individuals transferring money abroad based on the purpose of the remittance. The threshold and rate for TCS are fixed under the Liberalised Remittance Scheme of the Reserve Bank of India, which tries to make it easier to send money abroad.

Currently, TCS is available on remittances over Rs 7 lakh under the LRS. Here, the Finance Minister added that along with the move to reduce its rate, a lenient approach is being taken to decriminalize delays in paying TCS. In addition, TCS on remittances related to education loans is exempted.

Another emphasis of Union Budget 2025 is increasing the number of Indian Institutes of Technology, medical colleges, and promotion of Artificial Intelligence and education in Indian languages. This year, Finance Minister Nirmala Sitharaman delivered a development-oriented budget focused toward deprived sections that include the poor, youth, farmers, and women.

Two phases are defined for the Budget Session of the Parliament that initiated on January 31. Its first phase would conclude on February 13 whereas the second will start from March 10 till April 4. This is Nirmala Sitharaman's eighth successive Budget presentation, while P Chidambaram, former Finance Minister, presented nine budget and  Morarji Desai has the record with ten presentations, though not consecutively.