If I use an education loan to make my payment, do I still have to pay a tax?
If the education loan is availed from an institution under 80E, no TCS is applicable
If the education loan is availed from an institution not approved under 80E, 5% TCS is applicable
For any contribution made from personal funds, no TCS is applicable up to 10 Lakh INR. For any amount above 10 Lakh INR, 5% TCS will be applicable
Scenarios in which the source of funds is a combination of an education loan and personal funds, a default 5% TCS will be charged. Payers are requested to submit a loan sanction letter and loan account statement/disbursement letter to our partners to refund excess TCS