HSBC India announced the launch of a global education payments service for easy payment of university fees to parents planning overseas education for their children. Based on this new service, customers can conveniently transfer funds directly to international universities through the HSBC India mobile banking app.
With overseas education increasingly becoming a choice among rich Indian families, an HSBC survey recently reported 78% of high-net-worth parents are either planning to send their children abroad or have already sent them to universities overseas. Using this new service, any student detail can be entered with preverified university account details for transferring funds, and documents required for the loan can be safely uploaded.
HSBC India provides a direct payment facility to over 600 universities in five key countries and territories: The United States, United Kingdom, Canada, Hong Kong, and Australia. The service covers a vast list of expenses including tuition fees, accommodation, healthcare insurance, and any other form of expense connected to your university.
All these expenses are under the limits of Liberalized Remittance Scheme, therefore are in sync with the bank and laws. According to LRS, foreign education fees of other charges that include tuition, living charge on books, travel, and insurance fees amount to $250,000 in a financial year.
This facility also enables students to take loans. Important to note is that loans for overseas education carry a 0.5% Tax Collected at Source (TCS) as per the amended tax rules of 2023.
The TCS rate for any other payments linked to education services exceeding ₹7 lakh is 5%. Customers who send such remittances get a credit for TCS in their income tax returns.
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