Sending money to children studying or living abroad has become a common financial responsibility for Indian parents. Whether it is paying university tuition fees, covering accommodation, managing monthly living expenses, or supporting a child during an emergency, parents often need to transfer money internationally from India.
But one important question comes up before making the transfer: how much money can parents send abroad?
In 2026, resident Indians can generally remit up to USD 250,000 per financial year under the Reserve Bank of India's Liberalised Remittance Scheme (LRS), subject to applicable rules and documentation. The LRS financial year runs from April to March. The limit applies to the individual remitter and covers permitted current and capital account transactions combined.
For parents supporting children abroad, understanding the LRS limit, Tax Collected at Source (TCS), documentation, exchange rates and transfer process can make international payments much easier.
How Much Money Can Parents Send Abroad Under LRS?
Under the Liberalised Remittance Scheme (LRS), a resident individual can generally remit up to USD 250,000 per financial year for permitted purposes.
This means parents can send money abroad for legitimate purposes such as:
- University or college tuition fees
- Hostel and accommodation expenses
- Living and maintenance expenses
- Education-related payments
- Medical expenses
- Gifts to eligible recipients
- Other permitted current or capital account transactions
The USD 250,000 is an overall annual limit for the individual. It is not a separate USD 250,000 limit for every purpose. Therefore, parents should consider all eligible LRS remittances made during the same financial year before making another transfer.
Can Both Parents Send USD 250,000 Each?
Yes, the LRS limit is applicable to the individual resident remitter. Therefore, where both parents are resident individuals and independently meet the applicable requirements, each person's LRS entitlement can generally be considered separately.
For example, if both parents are eligible resident individuals, they may each have an LRS limit of USD 250,000 for the financial year, subject to the applicable rules and their individual remittance history.
However, families should not treat this as an automatic combined limit. The source of funds, purpose of remittance, documentation and tax requirements still need to be properly complied with.
Related reading: How Indian Students Can Pay UK University Fees from India.
Can Parents Send Money Abroad for Their Child's Education?
Yes. Education abroad is a permitted purpose under the LRS framework.
Parents may need to send money for several education-related expenses, including:
- University tuition fees
- Admission-related payments
- Hostel fees
- Accommodation
- Examination fees
- Books and study materials
- Other legitimate education expenses
The RBI's LRS framework specifically provides facilities for resident individuals pursuing studies abroad. Importantly, where the education expense exceeds the normal USD 250,000 LRS limit, authorised dealers may permit a higher remittance in certain circumstances based on the estimate or demand from the foreign educational institution.
This can be particularly relevant when students have high-value university fees or substantial education costs.
What Is the TCS on Sending Money Abroad in 2026?
TCS, or Tax Collected at Source, is another important consideration when parents transfer a large amount overseas.
For LRS remittances, the tax rules distinguish between education/medical purposes and other purposes. The 2026 tax changes reduced the TCS rate for LRS remittances made for education or medical treatment from 5% to 2%, effective from 1 April 2026. The applicable threshold remains relevant: the provision refers to remittances or aggregate remittances exceeding ₹10 lakh in a financial year.
For LRS purposes other than education or medical treatment, the applicable TCS treatment can be different. Therefore, parents should identify the correct purpose of remittance before transferring funds.
Is TCS an Additional Permanent Tax?
No. TCS is generally collected as a tax credit rather than being an additional final tax liability.
The amount collected as TCS can generally be reflected as tax credit and considered while filing the income-tax return, subject to the applicable tax rules.
Because tax provisions can change, parents making substantial international transfers should verify the applicable rate and threshold at the time of remittance.
What Documents Are Required to Send Money Abroad?
The exact documentation can vary depending on the bank, authorised dealer and purpose of the transfer. However, parents should generally be prepared to provide information such as:
- PAN details
- Valid identity and KYC documents
- Bank account details
- Beneficiary details
- Purpose of remittance
- University fee invoice or demand letter, where applicable
- Admission letter or supporting education documents, where required
- Form A2 or other applicable declarations
- Source-of-funds information, where requested
The RBI framework requires authorised dealers to follow applicable reporting and compliance procedures for LRS transactions.
Keeping documents ready can help reduce delays, particularly when transferring a large amount for university fees.
How Can Parents Send Money to Children Abroad?
There are several ways parents can arrange international transfers, depending on the purpose and destination.
1. Bank-to-Bank Wire Transfer
A bank wire transfer is one of the most commonly used methods for sending large amounts internationally.
The sender provides the beneficiary's bank information, which may include:
- Beneficiary name
- Account number or IBAN
- Bank name
- SWIFT/BIC code
- Bank address
- Purpose of remittance
Wire transfers can be suitable for university fees, accommodation payments and other larger transactions.
2. Forex and Remittance Providers
Parents can also use a regulated foreign-exchange or remittance provider to arrange an international transfer.
For example, FXpertise provides foreign exchange and international money-transfer services designed to help customers manage overseas payments.
Before selecting a provider, compare the exchange rate, transfer charges, applicable taxes, processing time and documentation requirements.
You can explore FXpertise's international money transfer services for information about sending money abroad.
3. Direct Payment to the University
When the money is specifically intended for education, parents may be able to transfer funds directly to the university's designated bank account using the payment instructions provided by the institution.
This can be useful for tuition payments because the university's invoice or payment demand can also support the purpose of the remittance.
What Is the Best Way to Save Money on International Transfers?
The amount your child receives abroad does not depend only on how much you send. The exchange rate and transfer charges can make a significant difference.
Before making a transfer, compare: Indian Rupees → Exchange Rate → Transfer Fees → Taxes/TCS → Amount Received.
For example, if two providers offer slightly different exchange rates, the difference can become substantial when transferring several lakh rupees.
Parents should therefore avoid selecting a provider based only on the advertised transfer fee. A provider with a low fee but a weaker exchange rate may ultimately cost more.
It is better to compare the total INR cost and final amount received by the student.
Is There a Limit on the Number of Transfers?
The LRS limit is primarily an annual aggregate limit, rather than a simple rule that allows only one transfer per year.
Parents can make multiple permitted remittances during the financial year, provided the aggregate remittances remain within the applicable LRS limit and all regulatory requirements are followed.
For example, a parent could make separate payments for tuition, accommodation and monthly living expenses instead of sending the entire amount at once.
However, every transaction should be properly documented and reported as required.
What Happens If Parents Need to Send More Than USD 250,000?
The standard LRS limit is USD 250,000 per resident individual per financial year.
However, education is one of the areas where the RBI framework provides additional flexibility in specific circumstances. For studies abroad, an authorised dealer may permit remittances exceeding USD 250,000 based on an estimate received from the overseas educational institution.
Parents should therefore contact their authorised bank or authorised dealer before attempting a transfer above the standard limit.
Do not split transactions simply to avoid compliance requirements. The relevant annual aggregate and applicable regulations need to be considered.
Important Things Parents Should Check Before Sending Money Abroad
Before making an international transfer, parents should follow a few practical steps:
- Check the annual LRS limit: Review all remittances already made during the April–March financial year.
- Confirm the purpose: Education, maintenance, medical treatment and other purposes can have different tax and documentation requirements.
- Compare exchange rates: Even a small difference in the exchange rate can affect a large transfer.
- Check TCS: Understand whether TCS applies and at what rate before initiating the transaction.
- Keep documents ready: University invoices, admission letters, PAN and KYC documents may be required.
- Verify beneficiary details: Incorrect account numbers, IBANs or SWIFT codes can cause delays or failed transfers.
- Use an authorised channel: International remittances from India should be processed through an appropriate authorised dealer or permitted channel.
Conclusion
For Indian parents supporting children overseas, understanding how much money can parents send abroad is essential before making a large international transfer.
In 2026, the standard LRS limit remains USD 250,000 per resident individual per financial year, while education-related remittances have specific provisions and tax treatment. The 2026 TCS changes also make education and medical remittances more favourable by reducing the applicable TCS rate to 2% for qualifying amounts above the ₹10 lakh threshold.
The safest approach is to plan the transfer in advance, maintain proper documentation, compare exchange rates and charges, and use an authorised channel.
If you are looking for a convenient way to manage foreign currency and international money transfers, FXpertise can help you explore suitable forex and remittance solutions for overseas payments.
Frequently Asked Questions
1. How much money can parents send abroad from India in 2026?
A resident individual can generally remit up to USD 250,000 per financial year under the RBI's LRS for permitted purposes. Education is included within the permitted framework.
2. Can parents send money to their child studying abroad?
Yes. Parents can send money for legitimate expenses such as tuition fees, accommodation and other permitted education-related expenses, subject to LRS, tax and documentation requirements.
3. Can parents send more than USD 250,000 for education?
In specific cases, remittances exceeding the standard LRS limit may be permitted for studies abroad based on documentation or an estimate from the overseas educational institution.
4. What is the TCS rate on education remittance in 2026?
From 1 April 2026, the proposed/legislated tax change reduced TCS on LRS remittances for education or medical treatment from 5% to 2% for applicable remittances exceeding the ₹10 lakh threshold.
5. Can parents send money in multiple transactions?
Yes. Multiple permitted remittances can be made during the financial year, but the applicable aggregate LRS limit and reporting requirements must be followed.
