New Delhi: In the Union Budget 2026–27 presented on February 1, Finance Minister Nirmala Sitharaman announced a major relief for students and families sending money abroad. The Tax Collected at Source (TCS) under the Liberalised Remittance Scheme (LRS) for overseas education and medical expenses has been reduced from 5 per cent to 2 per cent.
The TCS on overseas tour packages has also been brought down to 2 per cent from the earlier range of 5 to 20 per cent. The move aims to reduce the financial burden on individuals sending money overseas.
Alongside tax relief, the government increased the allocation for the Ministry of Education to Rs 1,28,650.05 crore for the 2025–26 period, reflecting a 6.65 per cent rise. The Budget places strong emphasis on AI-led learning, strengthening PM Shri school infrastructure and expanding medical education by increasing the number of medical seats across the country.