The Finance Act, 2020 has inserted a new sub-section (1G) in section 206C. According to the said sub-section, 5% tax collection at source (TCS) will be applicable on the remittances for overseas education, medical treatment, stuyding, donations, gifts and maintenance of close relatives w.e.f. 1st October, 2020. However, if the remittance is made out of a loan taken for higher education, the TCS rate will be 0.5% of the money remitted.
In non PAN/Aadhar cases, the rate shall be 10%.
Under the current scheme of Liberalised Remittance Scheme (LRS), all resident individuals, including minors, are allowed to freely remit upto USD 2,50,000 per financial year (April - March) for any permissible current or capital account transactions or a combination of both. However, this will expire with effect from 30th September, 2020.
Source: https://www.rbi.org.in/Scripts/FAQView.aspx?Id=115#Q1
