TCS Cut on Foreign Remittances: Will Sending Money Abroad Get Cheaper from April 1?

• From April 1, a flat 2% TCS will apply on overseas remittances for education and travel under the Liberalised Remittance Scheme (LRS).
• This replaces the earlier higher rate structure, significantly reducing the upfront tax burden for families and students.
• For example, a Rs 30 lakh tuition transfer will now incur Rs 60,000 TCS instead of Rs 1.5 lakh, freeing up Rs 90,000.
• However, hidden costs like exchange rate markups (e.g., 3% markup costing Rs 90,000) can offset these TCS savings.
• Consumers are advised to choose providers with transparent pricing and benchmark against the mid-market rate to maximize actual savings.