Shreyaa Kapoor Instagram – Planning on going abroad for education? Read on! 🙌🏼
Education abroad became even more expensive as the Finance Act of 2020 introduced Section 206C(1G) under the Income Tax Act, 1961 which imposes 0.5% TCS on an amount exceeding Rs 7 lakh in case of any remittance made for education loan from any financial institution in India. 🙌🏼
Say for example you are taking out a loan of 50 lakh from the bank, you will have to pay additional 0.5% in TCS on 43 lakh (50-7) which comes out to be 21,500.
But the TCS becomes 10 times more or 5% if you self finance! 🫠
However, you can get your parents to claim a full tax refund on the same. 🙏🏼
The whole amount of the TCS can be adjusted in the annual tax liability of your father or mother if they are the co-applicant in your education loan. This means the whole amount of TCS can be claimed back. 🙏🏼
Say your father’s tax liability for the year is 1 lakh, he can deduct the 21,500 paid as TCS from the same!🌱
Share this with your friends going abroad for their education!🙏🏼
.
.
[education loan, loan tips, education abroad, study abroad, personal finance, personal finance tips, finance hacks, taxation, bank loan] | Posted on 29/Mar/2024 20:00:08
