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GlossaryFinancial

What is Forex / Currency Remittance? Meaning, Full Form & Guide (2026)

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Quick Definition

Forex remittance is the process of sending Indian Rupees abroad in foreign currency (USD, GBP, CAD, AUD) to pay tuition, living expenses, or blocked accounts. Under LRS (Liberalised Remittance Scheme), Indian residents can remit up to USD 250,000/year. TCS (Tax Collected at Source) of 0.5–5% applies above ₹7 lakh.

Forex / Currency Remittance — Full Explanation

Best channels: bank wire (SBI, HDFC), Wise (formerly TransferWise), BookMyForex, or university-tied services like Flywire and PayMyTuition. Compare exchange rates and transfer fees. Avoid airport money exchange counters — rates are significantly worse.

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Written & reviewed by

Arjun SinghAcademic Counsellor — Test Prep & Complex Profiles
600+ students

Frequently Asked Questions

0.5% TCS applies on remittances above ₹7 lakh for education (funded by loan). 5% for other purposes. TCS is a tax credit — claimed when filing ITR.

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