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When it comes to international money transfer for overseas education, securing funds efficiently and safely is crucial. Whether covering tuition, accommodation, or living expenses, parents, guardians, and sponsors can choose between online transfer platforms or remittance centers for reliable transactions.
ConnectTo initiate a transfer, essential documents such as the remitter's PAN card, the student's university offer letter, and basic KYC documents are required. These steps ensure regulatory compliance and secure processing.
RBI Transfer Limit The Reserve Bank of India (RBI) permits individuals to send up to USD 250,000 annually for overseas expenses under the Liberalized Remittance Scheme (LRS). This amount may cover various purposes, including tuition, travel, and medical expenses.
Per the 2020–21 Union Budget amendments, transfers exceeding Rs. 7 lakh are subject to Tax Collected at Source (TCS). For general remittances, a 5% TCS is applied on amounts above this threshold. However, payments above Rs. 7 lakh made for educational purposes through financial loans are taxed at 0.5%.
Using a trusted service like Santa Monica can help families ensure that their international money transfers are both cost-effective and secure.
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