Hope your team is safe and well.

It's wonderful that you all are providing not only news but beneficial interface to the Rediff audience with experts from different facets of life.

I have some queries for Mr Anil.

1. I understand that any remittance, including tuition fees payments, to foreign countries from India should be within Rs 7 lakh and once it crosses this limit, then the excess amount will be taxed at 5 per cent as TCS. Am I right?

2. Also, I understand if the same tuition fee is paid from a student loan taken, then it will be taxed at 0.5 per cent as TCS. Am I right?

3. Finally, can each earning and income tax paying parent pay half of the international university fees for their child from their individual accounts, so that both stay within Rs 7 lakhs limit of foreign remittance allowed tax free?

Hope you can guide us and help. This will be really useful for us to plan.

Thank you in advance for your help.

Ans: TCS for educational purposes is 0.5% (if funded through an educational loan from a financial institution) or 5% (without loan) of the amount exceeding Rs 7Lakh.

Ans: Tax deduction is not applicable if the funds are remitted abroad for maintenance and education purposes, abroad.
Since, bank has deducted the same , it may be claimed as refund, if you do not have any other tax payable.

Ans: I understand that you are facing financial difficulties in providing educational funds for your daughter's studies. It's commendable that you are seeking assistance to support her education. Here are some options you can explore to seek educational fund donations:

Scholarship Programs: Research and apply for scholarship programs specifically designed for students pursuing higher education. These programs often provide financial assistance to deserving students based on their academic performance, financial need, or other criteria.

Non-Profit Organizations: There are several non-profit organizations, foundations, and trusts that provide financial aid and scholarships to students in need. Look for organizations that support education and inquire about their scholarship or grant programs.

Corporate Sponsorships: Some companies offer scholarships or sponsorships for deserving students under the applicable CSR schemes applicable as per the present companies act. Research companies in your area or within your field of work and check if they have any educational support programs.

Government Schemes: Inquire about government-sponsored scholarship programs or educational grants available for students from economically weaker sections. Contact the relevant government departments or education authorities for information and assistance.

Crowdfunding Platforms: Consider utilizing crowdfunding platforms that allow individuals to create campaigns and raise funds for specific causes. You can create a campaign highlighting your daughter's educational aspirations and financial constraints, and share it with friends, family, and social networks to seek support.

Local Community Support: Reach out to community organizations, local charities, religious institutions, or social welfare groups in your area. They may have programs or funds dedicated to supporting students in need.

When seeking educational fund donations, it is important to present your case with honesty, transparency, and authenticity. Explain your situation and provide relevant documentation to support your request. Additionally, make sure to follow any guidelines or application procedures specified by the organizations or programs you approach.

Remember, it's always advisable to conduct thorough research, be cautious of potential scams, and verify the credibility of any organization or program before sharing personal or financial information.

I wish you the best of luck in finding the necessary support to help your daughter continue her education!

Ans: As per Income tax provisions, if father transfer funds to son as gift; it will not be treated as Income and it is advisable to execute gift deed for the same. Further, for creation of FD in the name of father, payment is required to be done from bank account of father.

With reference to amount received as legal hair, son is required to pay tax on Interest income accrued after the date of death.