Can university fees be paid through Indian banks or parents in India in UK?
Yes, you or your parents can pay UK fees directly from India through bank transfers, RBI authorised forex providers, or portals like Flywire, under the Liberalised Remittance Scheme allowing up to USD 250,000 a year for education. Tax Collected at Source may apply above Rs. 10 lakh from personal savings.
Yes, you can pay your UK tuition fees directly through Indian banks, or your parents can send the money from India on your behalf, since the RBI's Liberalised Remittance Scheme permits residents to remit up to USD 250,000 a year for education. Most UK universities accept payment through dedicated portals rather than direct wire transfers alone, so check which channel your university uses.
Common Payment Methods And What They Involve
| Method | How It Works |
|---|---|
| University payment portals (Flywire, Convera, TransferMate) | Pay in INR through your bank's net banking; funds convert and reach the university in GBP |
| International wire transfer (SWIFT) | Your bank branch initiates a direct transfer to the university's UK account |
| RBI authorised forex providers | Often better exchange rates and lower fees than traditional banks |
| Indian debit or credit card | Convenient but carries a 1 to 3 percent international transaction markup |
Tax Collected At Source (TCS) You Should Plan For
- Education loans from a recognised Indian financial institution are fully exempt from TCS, regardless of amount.
- Self funded or parents' savings remittances are exempt up to Rs. 10 lakh a financial year, then taxed at 2 percent above that.
- TCS is not a lost cost; it can be claimed back as a refund or offset against income tax when filing your parents' ITR.
My Advice
Always ask your bank to file the transfer under RBI purpose code S0305 or S1107 for education, since a wrong code like general foreign travel can trigger a steep 20 percent TCS rate, and keep your offer letter and fee invoice ready before you initiate the transfer.
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