Remittance to support OCI Education

Yes tcs will be deducted by your bank @5% on payment exceeding 7 lacs. You can claim credit of tcs at the time of filing of ITR.

Dear Sir,

Hope you are doing well !!

Foreign remittance made above Rs 7 lakh will attract a tax-collected-at source (TCS) unless the tax has already been deducted at source (TDS) on that amount.

Please note that the TCS will be applicable on the amount in excess of Rs 7 lakh in a financial year and not on the total amount. For example, if the total foreign exchange facility availed under LRS in a financial year is Rs 10 lakh, and you want to remit the amount abroad, a TCS at 5 per cent will be applicable on Rs 3 lakh. (Rs 10 lakh minus Rs 7 lakh) and tax collected will be Rs 15,000. 

We may assist you in entire procedure.

It is advisable to take a phone consultation for detailed discussion.

You can send money to 250000 dollars in a financial year. Please note that this limit of 250000 is for all the remittances made abroad and not just the remittance towards the University fee of your cousin.

Also depending upon the the exact relationship between you and your cousin, this amount may be taxed as a gift. However gift to certain relatives are exempt from tax.

Further, bank will also deduct TCS for any remittances made abroad which exceeds 7 lakh rupees in a year.