How do you pay tuition fees abroad from India without the bank eating your money?

Three questions sit behind this search: how to pay tuition fees abroad from India, whether an Indian account can pay a foreign university, and how much tax collected at source (TCS) applies. Short answers. Send a wire transfer under the RBI’s Liberalised Remittance Scheme (LRS). Yes, a resident can pay from an Indian account. Per PTI’s Budget 2026 report, self-funded study attracts 2% TCS above ₹10 lakh a year. Below that line, and loan-funded fees pay nothing. LuLu Forex, an RBI-authorised dealer, handles it online and at branches. Read its RBI guidelines first.

You get a way to compare payment routes by the rupees you spend, the tax rule that sets your bill, a list of what stalls a payment, and LuLu Forex’s online steps from start to submission.

What goes wrong when you pay tuition fees abroad?

A tuition payment is a wire transfer with a deadline. The deadline is the problem.

• The chain: A wire transfer moves through the beneficiary’s bank and, where applicable, intermediary banks.
• The rate: The headline rate and the rate on your statement can differ. Compare the rupees debited for the same foreign amount.
• Limit: The LRS sets a limit of USD 250,000 per financial year for a resident individual across all purposes, including tuition, travel, and gifts. Tuition, travel, and gifts share it.
• Tax: For amounts exceeding ₹10 lakh in a financial year, TCS is collected.
• The paperwork: One wrong digit in an account number or SWIFT code stops the transfer. Copy details from the university’s invoice.

Which route works for tuition: bank, dealer or online?

RBI’s Master Direction lets both Category I banks and Category II dealers release funds for studies abroad. The choice comes down to cost and effort.

Bank wire: This works if you already hold an account or a loan there. Ask for the final INR debit and the charge breakdown in writing.

Authorised forex dealer: Outward remittance is a core service for a dealer like LuLu Forex. Ask for the same two figures and compare the answers.

Online remittance: With LuLu Forex, same rules, same KYC, and no branch visit.

How does LuLu Forex’s online tuition payment work?

1. Start the remittance: enter the amount, country, and purpose.
2. Sign up or log in with a mobile OTP.
3. Enter the order details.
4. Add your details as the sender.
5. Add the university as the beneficiary.
6. Upload your documents.
7. Complete the declaration and Aadhaar verification.
8. Pick a payment method.
9. Check the order summary.
10. Pay and submit. Confirmation follows.

At a counter, the branch route has five steps: visit a branch, add the beneficiary, complete KYC, confirm, track. The outward remittance page has the order form and the branch steps.

How much tax will you pay on tuition fees abroad?

• Up to ₹10 lakh in a financial year: nil.
• Above ₹10 lakh, self-funded: 2%, cut from 5% in the Budget presented on 1 February 2026.
• Education funded by a loan from a specified financial institution: nil.
• Gifts, family support, investments and most other purposes above ₹10 lakh: 20%.

What should you do next?

Send tuition fees through an authorised dealer or bank, use the details from the invoice, and keep track of the ₹10 lakh limit.

With LuLu Forex, you get:

• RBI Category II authorisation, licence KOC-ADII-0021-2023
• An online order from amount to confirmation, or a counter at branches in Delhi, Bangalore, Hyderabad, Chennai, Calicut, Mumbai and 25 more locations
• Document guidance before you pay

FAQs

Can I pay tuition fees abroad from an Indian bank account?

Yes. A resident individual can remit tuition fees under the LRS through an authorised bank or dealer, with KYC and supporting documents.

What is the LRS limit for tuition fees?

USD 250,000 is allocated each financial year, from April to March, and can be used for all approved purposes. For studies abroad, an authorised dealer can release more on the university’s estimate, without prior RBI approval.

Is TCS charged on tuition fees paid abroad?

TCS is not applicable up to ₹10 lakh per year. Above that, self-funded tuition attracts 2%. Education funded by a loan from a specified financial institution attracts none.

Can parents pay the fees for their child?

LuLu Forex’s outward remittance page covers fees for your children’s education. The remitter's KYC and LRS limits are applicable for such payments.

How long does it take for the money to reach the university?

Timelines depend on purpose, amount, destination country, and beneficiary bank. Ask for an estimate at booking and send the payment days before the university’s deadline.

Which documents do I need?

LuLu Forex verifies KYC and documents for every remittance and can ask for more, depending on the purpose, amount, and destination. Online, you upload them and complete Aadhaar verification. Ask an advisor for the exact list for your university and amount before you pay.

Can I track a tuition payment?

Yes. Tracking is the final step of the branch process on LuLu Forex’s outward remittance page.