Tax Collected at Source (TCS) is a tax regulation enforced by the Government of India for international remittances under the Liberalised Remittance Scheme (LRS). The applicability of TCS depends on the source of your funds, your total remittance amount within the financial year, and your chosen payment method.
What are the TCS rates and exemptions for my payment?
Disclaimer: Tax regulations under the LRS are determined by the Government of India and are subject to change. The rates below reflect the guidelines effective April 1, 2026. For the most up-to-date tax information, please consult your tax advisor or refer to the official Income Tax Department of India portal.
For international education payments originating from India, the rates are structured as follows:
- Self-funded payments (up to 10 lakh INR): 0% TCS.
- Self-funded payments (exceeding 10 lakh INR): 2% TCS applies only to the amount exceeding the 10 lakh limit.
- Education loans (Section 80E) OR a combination of Loan & Savings: 0% (Nil) TCS for any amount.
Note: For non-education or non-medical LRS remittances exceeding 10 lakh INR, a 20% TCS applies.
How is TCS calculated and collected?
The method of collection depends entirely on the payment method selected during your Flywire booking:
TCS collected via Flywire
- Applicable methods: Domestic Bank Transfer in INR, Ahalia in INR.
- How it works: Flywire will assist with the tax calculation right on our platform. Once you enter your PAN details during the booking process, we will instantly calculate the applicable TCS and add it to your total INR transfer amount.
- Where to view the breakdown: You can review the exact tax breakdown during the "Review & Confirm" step of your booking. After the booking is created, you can always view the specific TCS and GST amounts on your payment tracking page by clicking the info (i) icon next to the "Including taxes" section.
- Where does the money go? You will transfer the total amount to Flywire, and our local banking partner will remit the TCS portion directly to the Indian tax authorities on your behalf.
TCS collected by your financial institution
Flywire does not calculate or collect TCS for the following methods. Your payment to Flywire will only include your tuition and standard fees. The tax will be handled externally:
- Online Bank Transfer in INR (ICICI, HDFC, SBI): Your bank will assess if TCS is applicable directly on their own platform. If applicable, they will deduct the TCS directly from your bank account as a separate line item alongside your tuition transfer.
- Card Payments (Visa/Mastercard/Amex/Diners): Please check with your card-issuing bank regarding the TCS amount. If applicable, this tax will not show up during the Flywire checkout, but will be charged to your monthly credit card statement.
- International Bank Transfers: If you are completing a traditional international wire transfer, please check directly with your local bank or FX agent for the TCS amount and how it will be collected before you send the funds.
Why is my PAN (Permanent Account Number) required?
Under Indian tax law, all LRS transactions must be tracked against the payer's PAN.
- Tracking Limits: The financial system uses your PAN to monitor your annual remittance limit (from April to March). This determines if your payment has crossed the TCS exemption threshold.
- Accuracy: It is critical to provide the exact PAN details of the person or entity funding the payment to ensure the correct tax rate is applied.
Claiming TCS and the Tax Certificate
TCS is not an additional extra cost for the student; it is an advance tax payment that is reflected in the payer's Form 26AS/AIS. You can offset it against your total income tax liability in India or claim a full refund if you have no tax liability.
Issuance: To facilitate your tax return, Flywire’s local payment partner (or your issuing bank) will issue a quarterly TCS Tax Certificate.