Union Budget 2025: Nirmala Sitharaman has shown generosity towards parents who send their children abroad by taking loans. But, the expectations of those who send their children abroad by cutting down on food or selling their property have not been fulfilled by the budget. In the budget of 2025-26, the Government of India has abolished TCS i.e. tax deduction at source on paying the college fees of children studying abroad by taking a loan. Earlier, 0.5 percent tax was levied on sending more than seven lakh rupees for college fees in a year. 

TCS will continue to be deducted at the rate of 20% if the account is sent abroad without taking a loan 

Those who take loans to send their children abroad for studies have got relief, but those who send their children abroad by investing their lifelong savings or by selling property or jewellery have not got any relief. 20% TCS will continue to be deducted on sending them abroad for college fees as before. However, the limit of TCS has been increased on paying fees in foreign colleges even without taking a loan. The government has now increased its limit from seven lakhs to 10 lakh rupees.

Experts say that such parents should also get relief considering their income. Because many of these parents do not take loans to avoid the heavy burden of interest and sacrifice their own future for the future of their children even by withdrawing money from PF etc. The condition of such parents becomes worse than the parents who take loans and send their children abroad. 

The dreams of middle class parents will be fulfilled

This step of the Finance Minister is going to confirm the intention of developed India by promoting higher education abroad. This will also fulfill the dreams of middle class parents, who want to ensure a better future for their children by sending them abroad for studies. The number of parents having such dreams will also increase.