The short answer
Indian residents who send money abroad to pay for education normally do so through an authorised dealer bank or another authorised provider, under the Reserve Bank of India's framework for remittances. The details, including limits and tax treatment, are set by Indian regulators and change from time to time. Ask your bank, and check the official RBI and Income Tax Department pages, before you send money.
What you will probably need
Banks and authorised providers usually ask for:
- Proof of admission, such as an offer letter or a fee invoice from the university
- Your passport and other identity documents
- Your PAN
- Details of the recipient account, as given by the university
- A remittance form, which your bank will guide you through
- Documents about the source of funds, if requested
Requirements vary by bank and by purpose, so ask early.
How to pay tuition
- Get the payment instructions from the university's official page or finance office. Be careful with emails asking you to pay a different account.
- Ask your bank or authorised provider how to remit and what documents they need.
- Compare the exchange rate and the fees. The headline rate can look good while the fee takes it back.
- Send the payment, and keep every receipt. You may need them for your visa or for tax purposes.
- Tell the university when you have paid, and ask for a confirmation.
Tax and charges
Tax collected at source (TCS), bank charges and other deductions can apply, depending on how and why you remit. Rates and thresholds are updated, often in the annual Union Budget, so do not rely on a figure from a blog. Check with your bank and the Income Tax Department.
Checklist
- To do: Confirm the university's official payment details
- To do: Ask your bank which documents and forms are required
- To do: Compare the exchange rate and the fee together
- To do: Ask about tax collected at source and charges
- To do: Keep receipts and confirmations in your document vault
- To do: Tell the university when you have paid
Common mistakes
- Using an informal or unlicensed channel. It can put your money and your visa at risk.
- Paying an account sent by email without confirming it on the university's official site.
- Comparing only the headline rate.
- Sending money too late. Deadlines for tuition and visa evidence do not move.
- Not keeping receipts.
Verify before you act
Rules for remittances, limits and tax change. Check with your bank and the official pages: Reserve Bank of India.