In a welcome move for Indian families and students aspiring to study abroad, the 2026 Budget reduced the Tax Collected at Source (TCS) on overseas education remittances from 5% to 2% when sending amounts above ₹10 lakh under the Liberalised Remittance Scheme. This change is expected to ease the financial burden on those funding international education and medical expenses.
By lowering the cost of cross-border funds transfer for personal development purposes, the government has signalled a more supportive stance toward global academic aspirations and health-related needs — potentially boosting discretionary financial flows and offering relief to middle-class households.
