Budget 2026: Overseas Education TCS Cut to 2% for Remittances Above Rs 10 Lakh

• Union Budget 2026 reduces Tax Collected at Source (TCS) on overseas education remittances under LRS from 5% to 2% for amounts exceeding Rs 10 lakh.
• The relief also extends to outward remittances for medical purposes, easing financial burden on families.
• Finance Minister Nirmala Sitharaman announced the reduction during her budget speech.
• Experts like Kunal Savani and Ankit Mehra view this as a timely relief, improving liquidity and affordability for students.
• TCS on education loans from financial institutions remains at zero percent; some analysts suggest complete removal of TCS on self-funded remittances for greater relief.

Why It Matters: Budget 2026 slashes TCS on overseas education and medical remittances above Rs 10 lakh from 5% to 2%.