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TransferMate is committed to continually enhancing the user experience of our platform to meet the evolving needs of our customers.
TransferMate has launched a product update that simplifies the international payment experience for Indian students and their institutions. Students from India paying tuition can now settle their full tuition fee and the mandatory Liberalised Remittance Scheme (LRS) tax in a single transaction, reducing time and confusion for the student paying and administrative burden for the institution receiving payments.
For years, TransferMate has been a trusted partner for educational institutions and their global student populations, offering a faster, safer, and more cost-effective way to pay international tuition fees. By enabling students to pay in their local currency with competitive exchange rates and transparent tracking, TransferMate has removed many of the traditional barriers that come with cross-border payments.
However, for Indian students, one particular friction point had remained: the Tax Collected at Source (TCS) requirement.
What is the liberalised remmittance scheme for Indian students?
As a mandatory tax introduced by the Indian government under the Liberalised Remittance Scheme (LRS), requiring up to 5% of an overseas tuition fee transaction to be paid separately to the Indian tax authorities. Previously, Indian students had to make two separate payments, one to the institution via TransferMate for their tuition fees and another directly to the Indian government via their bank, often involving frustrating form fills, longer timelines, and potential delays in tuition confirmation.
What is the TCS EBIX tax payment update?
With our new update, TransferMate has integrated the TCS EBIX tax payment directly into our international tuition payment flow.
Indian students can now make a single transfer that covers both the tuition fee and the TCS EBIX obligation, with TransferMate managing the disbursement to both the institution and Indian tax authorities.
This innovation offers clear benefits for all stakeholders:
- For students, it removes the hassle of making multiple payments, simplifies compliance, and speeds up the time it takes for institutions to confirm tuition receipt.
- For institutions, it reduces drop-offs in the payment process and improves the onboarding experience for one of the world’s largest international student groups.
- For compliance teams, it ensures that funds are processed per Indian tax regulations, thereby reducing potential reconciliation headaches.
“This update is a big win for Indian students and the institutions that support them,” said Thomas Butler, Head of Education at TransferMate. “We’ve identified a consistent point of friction and built a solution that delivers real value. Now, paying from India is much easier for all parties involved.”
This update is already live on our platform, and institutions are not required to perform any additional requirements at this time.
TransferMate continues to work closely with its global education partners to remove friction from the international payment experience. With this latest update, institutions can now offer their Indian students a truly seamless way to meet both academic and tax obligations, without the administrative overload.
Contact TransferMate today to improve your international student payment process.
