Frequently Ask Questions

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Under the Liberalized Remittance Scheme, all resident individuals, including minors, are allowed to freely carry currency up to USD 2,50,000 per financial year (April – March), as per regulations. However, only USD 3000 of that amount can be carried as currency notes for a particular trip– the balance must be in the form of prepaid forex cards, traveler’s cheque, or banker’s draft.

You will need your passport, PAN, a valid visa, current address proof and a confirmed return air ticket.

Yes, it is mandatory for the resident individual to provide his/her Permanent Account Number (PAN) for all foreign exchange transactions.

In the event of cancellation of the journey, the foreign exchange drawn for this specific travel must be surrendered within 60 days from the date of its purchase.

"Person resident in India" is defined in Section 2(v) of FEMA, 1999 as: A person residing in India for more than one hundred and eighty-two (182) days during the preceding financial year but does not include:

A person who has gone out of India or who stays outside India, in either case -

  • - For taking up employment outside India
  • - For carrying on outside India a business or vocation
  • - For any other purpose, in such circumstances as would indicate his intention to stay outside India for an uncertain period

A person who has come to or stays in India, in either case, except:

  • - For taking up employment in India
  • - For carrying on in India a business or vocation in India
  • - For any other purpose, in such circumstances as would indicate his intention to stay in India for an uncertain period
  • - Any person or body corporate registered or incorporated in India
  • - An office, branch or agency in India owned or controlled by a person resident outside India
  • - An office, branch or agency outside India owned or controlled by a person resident in India

  • Self
  • Spouse
  • Father or Step Father
  • Mother or Step Mother
  • Son and Step son
  • Son's Wife
  • Daughter
  • Daughter's husband
  • Brother or Step brother
  • Sister or Step Sister

* For certain transactions, only payments from customer’s own account will be accepted. Furthermore, individuals should only use their savings bank account to purchase foreign exchange.

No, third party payment is not allowed as per RBI guidelines.

* The foreign nationals must stay in India for minimum 3 years and above, having pan card, permanent residency in India and applicant is not availing of facilities for remittances of his salary, savings, etc. abroad in terms of extant regulations

* Similarly, Foreign born wife of an Indian national staying in India minimum 3 years and above, having pan card, permanent residency in India and applicant is not availing of facilities for remittances of his salary, savings, etc., abroad in terms of extant regulations

  • There is no limit on the amount of foreign exchange that can be brought into India. However, currency notes beyond USD 5000 (equivalent) and up to USD 10000 (total) need to be reported at customs and currency declaration form (CDF) is to be obtained
  • CDF is required whenever currency / forex surrender exceeds the respective limits

Yes, children of all ages are allowed same entitlements (limits) as adults, But Minors/children below age of 12 cannot carry Forex card/Travelers cheque.

  • Non-Resident Indians living in India beyond 180 days are eligible to purchase forex.
  • Foreign Nationals permanently residing in India are eligible to avail foreign exchange provided the applicant is not availing of facilities for remittance of his/her salary, savings etc. abroad in terms of the existing FEMA regulations. Similarly, Foreign born wife of an Indian national.

There is no restriction on residents holding foreign coins.

As stipulated by the Government of India, any conversion from one currency to another - sale, encashment & remittance will be charged a GST/SGST on the gross amount of currency exchanged as per the following slabs:

  • 0.18% of the gross amount of currency exchanged for an amount upto Rs 100,000, subject to the minimum amount of Rs 45
  • Rs 180 and 0.09% of the gross amount of currency exchanged for an amount of rupees exceeding Rs 100,000 and up to Rs 10,00,000
  • Rs 990 and 0.018 % of the gross amount of currency exchanged for an amount of rupees exceeding Rs 10,00,000, subject to a maximum of Rs. 10,800/-

While surrendering currency the customer’s identification document and proof of address is required. If the amount exceeds USD 5,000 in the form of currency notes or exceeds USD 10,000 in total, a Currency Declaration form (CDF) will also be required.

Outward Remittance is a transfer of money in foreign exchange, by a resident in India to a beneficiary situated outside the country (except for Nepal, Bhutan, North Korea and Iran) for a purpose as approved under FEMA (Foreign Exchange Management Act). You may send money abroad to a beneficiary for various purposes including education, employment abroad, emigration, foreign travel, medical treatment, etc.

The Liberalized Remittance Scheme is a facility provided by the RBI for all resident individuals including minors for remittance up to USD 250,000 or equivalent per financial year for permissible current or capital account transactions or a combination of both. This facility will not be available to corporate, partnership firms, HUF, Trusts, etc.

Resident of India can do an Outward Remittance transaction.

Below remittances can be carried out through RemitX as per the Liberalized Remittance Scheme:

Student Remittances:
  1. University Fee Payments
  2. Overseas Education – GIC, GBA
  3. Living expenses/ Accommodation payments
Other Remittances:
  1. Private Visits to any country (except Nepal and Bhutan)
  2. Emigration
  3. Examination Fees
  4. Visa fees
  5. Fee for participation in global conferences and specialized training
  6. Remittance for participation in international events / competitions (towards training, sponsorship, and prize money)
  7. Employment and processing, assessment fees for overseas job applications,
  8. Medical Treatment abroad
  9. Any other current account transaction which is not covered under the definition of current account in FEMA 1999

RemitX charges a nominal fee of Rs. 250 for every remittance transaction.

Nostro bank charges are fee/charges levied by the Nostro bank of the sending bank for effecting the remittances. You will have to select if the sender (remitter) or the beneficiary will bear the charges. If remitter is selected additional charges will be collected else, if beneficiary is selected the final amount will be less the Nostro bank charges

Swift Copy refers to a document that acts as a confirmation of payment made from your bank and informs the beneficiary of the value date of the transaction. Once the remittance is completed, a copy of SWIFT/ Debit Advice will be mailed to your registered email ID.

Yes, you will have to submit your self-attested transactional KYC documents physically. Our service executive will collect the documents from your residence/office address. This will also be applicable to customers who have done their Video KYC through the RemitX App.

No, third party payments are not allowed by RBI for outward remittance transactions. Payment can only be done by the following:

  1. Self
  2. Spouse
  3. Father or Step Father
  4. Mother or Step Mother
  5. Son and step son
  6. Son's Wife
  7. Daughter
  8. Daughter's husband
  9. Brother or Step brother
  10. Sister or Step Sister

*For certain transactions, only payments from customer’s own account will be accepted. Furthermore, individuals should only use their savings bank account to purchase foreign exchange.

There are no restrictions on the frequency of remittances under LRS. However, the total amount of foreign exchange purchased from or remitted through, all sources in India during a financial year should be within the cumulative limit of USD 2,50,000.

Once a remittance is made for an amount up to USD 2,50,000 during the financial year, a resident individual would not be eligible to make any further remittances under this scheme, even if the proceeds of the investments have been brought back into the country.

For remittances pertaining to permissible AD II transactions, the customer has to furnish Form A-2 along with supporting documents (ID/Address proof) regarding the purpose of the remittance and declare that the funds belong to him and will not be used for purposes prohibited or regulated under the Scheme

Any Indian resident can remit up to USD 2,50,000 or equivalent in one financial year as a gift to a person residing outside India or as donation to a charitable/educational / religious /cultural organization outside India. Remittances exceeding the limit require prior permission from the Reserve Bank.

Yes, foreign exchange for students planning to study abroad can take foreign currency in all forms except currency where a limit of USD 3000 applies. Pre-paid cards can be re-loaded by students’ parents / guardians at any time (In Workings hours and Working days).

A direct remittance service to the institute you are getting enrolled in can also be done through RemitX.

In general, foreign exchange entitlement comes under USD 2,50,000 per financial year (If not consumed any part of it in any other purpose stated under LRS). Remittances exceeding USD 2,50,000 will be allowed based on the estimate received from the institute abroad.

Yes, it is mandatory for the resident individual to provide his/her Permanent Account Number (PAN) for all transactions under LRS made through Authorized Persons.

The remittances can be made in any freely convertible foreign currency. In case you are not able to find the currency in our list, you are requested to send email to and we shall assist you on the same.

Money can be sent abroad through the following modes:

  • Wire Transfer
  • Foreign Currency Demand Drafts

By using the RemitX App or by visiting any of our branches and submitting the needed forms/documents with beneficiary and transaction details, you can make an outward remittance.

Resident Individuals are allowed to send Outward Remittances under Liberalized Remittance Scheme (LRS) up to USD 2,50,000 or equivalent per financial year for any permissible current account transactions.

Yes, it is advisable to carry a small value of your Foreign Exchange in the form of currency notes, so you have cash on hand for immediate expenses like hiring a cab, buying food, obtaining a trolley etc.

Travelers going to all countries other than (a) (b) and (c) below are allowed to purchase foreign currency notes / coins only up to USD 3000 or equivalent per visit. Balance amount can be carried in the form of store value cards.

Exceptions to this are:
  1. Travelers proceeding to Iraq and Libya can draw foreign exchange in the form of foreign currency notes and coins not exceeding USD 5000 or its equivalent per visit;
  2. Travelers proceeding to the Islamic Republic of Iran, Russian Federation and other Republics of Commonwealth of Independent States can draw entire foreign exchange (up-to USD 2,50,000 or equivalent) in the form of foreign currency notes or coins;
  3. For travelers proceeding for Haj/ Umar pilgrimage, full amount of entitlement (USD 250,000 or equivalent) in cash or up to the cash limit as specified by the Haj Committee of India, may be carried.

A resident Indian can take Indian rupee outside India (other than to Nepal, Bhutan, Pakistan, and Bangladesh) as currency notes up to an amount not exceeding Rs. 25,000 per person.

Indian residents who travel to Pakistan and/or Bangladesh on a temporary visit may bring into India currency notes up to an amount not exceeding Rs. 10,000 per person.

RemitX’s team of industry experts holds extreme expertise and years of experience in dealing with currency exchange. Expert cashiers and backed with currency detecting machines helps in quickly identifying torn, soiled, or fake notes and hence when you purchase currency from RemitX, be rest assured that your notes are genuine and will help you enjoy a good trip abroad.

A person coming into India from abroad can bring with him foreign exchange without any limit. However, if the aggregate value of the foreign exchange in the form of currency notes, bank notes or traveler’s cheques brought in exceeds USD 10,000 or its equivalent and/or the value of foreign currency notes alone exceeds USD 5,000 or its equivalent, it should be declared to the Customs Authorities at the Airport in the Currency Declaration Form (CDF), on arrival in India.

A foreign exchange purchase can be made from an authorized person in cash for below Rs. 50,000/-. Nevertheless, if the amount of foreign exchange sold exceeds Rs 50,000/-, the entire payment must be made by a crossed cheque, RTGS/NEFT drawn on the applicant's bank account.

Yes, you can add multiple currencies & products you wish to purchase in one order. You will just need to add the currency/product in the order cart of RemitX portal and proceed to checkout.

On return from a foreign trip, travelers are required to surrender unspent foreign exchange held in the form of currency notes and traveler’s cheques within 180 days of return. However, they are free to retain foreign exchange up to USD 2,000, in the form of foreign currency notes or TCs for future use.

Form A2, application cum declaration, copy of a valid Passport, copy of PAN, current address proof, confirmed return air ticket, Visa (if available) otherwise declaration on the same are required for buying foreign currency.

Permissible foreign exchange can be drawn 60 days in advance. In case it is not possible to use the foreign exchange within the period of 60 days, it should be immediately surrendered.

The amount of currency notes may be purchased by a traveler proceeding to Iraq and Libya, up to not exceeding USD 5,000 or its equivalent in a year (total USD 2,50,000 or its equivalent). For traveler’s going to Iran, the Russian Federation and other Republics of Commonwealth of Independent States, the entire exchange (USD 2,50,000 or its equivalent) can be released in the form of currency notes. Travelers travelling by land to Pakistan, Bangladesh or Myanmar are eligible to taker currency up to USD 2,50,000 or its equivalent each financial year.  In case traveler has exhausted the limit of USD 2,50,000 or equivalent in one financial year, the traveler can approach nearest office of Reserve Bank of India and obtain approval to carry foreign exchange over and above the limit.

Multicurrency Forex Card is designed exclusively for customers who travel extensively across the globe. It is a unique product with multiple currencies loaded on the same card for convenience, thus avoiding the need to carry multiple cards for different destinations. When you're traveling, it's easy to access local currency at an ATM. Simply look for the Visa/Mastercard symbol on the ATM. These are a part of global ATM network which allows you to get cash at over 2 million ATM's in more than 200 countries and territories the world over. Before you travel, it is a good idea to check with your card-issuing bank about the overseas ATM transaction fees.

A Prepaid Travel Card comes with a lot of other benefits:

  • Access to over 34 million merchant establishments and to 2.1 million ATM's
  • Free Replacement Card.
  • Global Emergency Toll Free Assistance in over 80 countries
  • Online access and controls on your card
  • Online usage
  • High level of Safety and security
  • Encashment option available once you return from your trip

A forex prepaid card provides the best combination of safety, security, and convenience for frequent travelers. More than 2 million ATMs and over millions of establishments accept it for purchases and withdrawals.

Prepaid forex cards are generally more cost-effective than debit cards. Whenever possible, it is advisable to compare various bank charges via retail outlets and ATMs.

For your foreign travel needs, prepaid cards are generally available in all major currencies, and they can be loaded into one card.

A prepaid forex card can be reloaded and is valid for a period of at least three (3) years. There is no limit to the number of times you can use the Prepaid Forex Card within this period. Whenever you travel overseas, you can reload your Card through RemitX.

Most Forex cards have a limit of USD 40 or equivalent on NFC (Near-Field Communication) transactions

In certain countries, the overseas banks providing ATMs or POS machine payment services may offer to charge you in Indian Rupees, this concept is called “Dynamic Currency Conversion” (DCC). This process allows the ATMs or the Merchants to charge significantly higher mark-up on the currency conversion.

However, despite the safeguards, it should be noted that if in case a transaction is approved under DCC, the customer will have to bear the loss related to exchange mark-up. The card issuer is not liable for “Dynamic Currency Conversion” related charges and will not be able to refund any such charges in case you proceed with DCC transaction and accepts the DCC charges in the ATM / POS machine.

  • Duly filled and signed Card Application/Reload Form
  • Copy of self-attested Passport (carry your original Passport for verification)
  • Copy of self-attested return Air Ticket and Visa (carry originals for verification)
  • PAN Number must be mandatorily mentioned on the Application Form with a self-attested copy of the same
  • If the address mentioned on the application form differs from the address mentioned on the Passport, then an additional address proof will be needed to submit

No. You cannot use the cards in India.

The usage of your Travel Currency Card should be strictly in compliance with RBI and FEMA regulations. The amount loaded or reloaded on the card can be done as per the foreign Exchange Management Act, 1999 and prevailing RBI regulations in force at present.

Purpose Limit
For Holidays, Personal visits etc. USD $2,50,000 per financial year
Employment Abroad - For the person who is going to work abroad USD $2,50,000 per financial year
Medical Treatment - For the person traveling abroad for treatment USD $2,50,000 per financial year or amount as mentioned in the letter from overseas hospital / doctor
Studies Abroad - For the student pursuing studies abroad Eligibility is USD $2,50,000 per financial as per RBI however it is restricted to amount as mentioned in university fees letter

RemitX allows you to retain your forex card and reload it before your next trip abroad so that you can use it when you're back home.

Your forex card balance can only be encashed once you return to India. The last transaction on the card should be done at 10 days prior to the encashment date. No matter where the card was issued, RemitX branches can refund the unutilized balances. To claim your refund at the best rate you will need to fill out the refund form and submit a copy of your passport along with it.

A blocked account, also known as ‘Sperrkonto’, is a special account which needs to be opened, when you start your German Visa application process, from your home country. Needless to say, it is a prerequisite document of your Visa application process.

No, there are no exceptions for opening a blocked account. A blocked account is the only way of proving one’s financial standing. There are many other ways to prove the financial stability, but it is better to check with the German consulate beforehand.

It is extremely important that you exercise caution when you open the blocked account. A Blocked account is a proof of financial means provided to the Foreign Office of the Federal Republic of Germany. Therefore, it is very important for your blocked account to be accredited by the Foreign Office of the Federal Republic of Germany. Be aware that not all accounts are equally accepted by all authorities. Make sure that the provider you choose covers all your needs.

Security and acceptance should have a higher priority over saving a little amount of money on fees; because, in the end, you could end up paying higher if things do not go as expected. Blocked accounts based on a fully licensed bank in Germany only provide full deposit protection and comprehensive acceptance. Also, it is very important for the Blocked account holder to understand the cost of funding for the blocked account and for refund if any in case of Visa refusal.

Below is the list of documents required to open a RemitX blocked account:

  • Address Proof in India
  • University Letter
  • Recent passport size photo (colour)
  • Passport copy (front & back side)
  • PAN Card copy

At the moment, the presumed annual requirement that must be paid into the blocked account when applying for a student visa amounts to 11,208 euros per year i.e., 934 Euro per month. Although, many students often choose to deposit more than the minimum amount required to increase their chances of getting their student visa approved.

Yes, RemitX charges one time set up fees of 89 Euros to set up a Blocked account.

Yes, you can. The amount of 11,208 Euro’s is only the minimum amount of money required for you to apply for your student visa. In case you need to deposit more than 11208 Euro’s, you can add maximum up to 1000 Euro’s as “additional basic sum” in your blocked account. It must be noted that the additional amount in “additional basic sum" will be disbursed to your savings in your first disbursement payment.

It takes just Three steps to open and operationalize your RemitX Blocked account. The Blocked account process is completely online with an end-to-end solution

Unfortunately, you can’t. Even if you’re short on time, the bank cannot proceed faster with your application. Hence, it is always recommended to start your German Blocked account opening procedure as soon as possible.

If your visa application is rejected by the German embassy in your home country, the amount will be refunded. All you need to do is log on the GBA portal – and update your visa status as rejected, upload your visa rejection letter, and click on submit. RemitX will then refund the funds to your bank account held in India in INR as per the prevailing market rate post deductions. Note: Transfer fees, will be borne by the student.

RemitX blocked account is an end-to-end solution for students traveling to Germany. By choosing the RemitX blocked account, the process system helps you fund and manage your blocked account. RemitX strictly adheres to the rules and regulations of the student’s home country - for example, In India it is mandatory that the funds are originated from the students OR from their blood relatives bank account only.

German Blocked account is regulated by German Laws and regulations. Third party sponsorships to blocked account are permitted as per the German regulations. RemitX, in accordance with the German Regulations allows Third Party to fund German Blocked Account. In such cases RemitX is entitled to ask for additional documents to establish the funding of the said Blocked account. The funding process is strictly as per the student’s home country’s KYC regulations.

The German Deposit Guarantee Act applies to RemitX Blocked account as the blocked account is opened in a German bank incorporated in Germany. Pursuant to this Act, deposits of retail clients, partnerships and corporations are guaranteed up to the amount of € 100,000 per depositor.

Opening a RemitX blocked account has never been easy, go to – follow these steps:

  • Click on products and select RemitX German Blocked account.
  • Create your blocked account online
  • Enter your basic details such as - email id and Mobile no and get yourself registered on the portal.
  • An OTP will be sent to your registered email id / mobile no. Enter the OTP and complete your personal details and upload documents wherever requested

    • Documents required to upload for Foreign Students are as below:

      • Passport Copy (Front & Back side)
      • University Letter
      • Recent passport size photograph (colour)

      Documents required to upload for Indian Students are as below

      • Address Proof in India
      • University Letter
      • Recent passport size photograph (colour)
      • Passport copy
      • PAN Card

Your Blocked account will be created, and the details will be sent to your registered email ID.

  • Log in to your account with your registered email id and click on “My account” to deposit funds in your Blocked account
  • The portal provides options for funding of Blocked account as per the payee type and mode of payment.
  • Select your preference for document verification and proceed for payment type.
  • In case of Education Loan, you can also transfer “Payment instruction” to your education loan provider by generating Form No 5 (Form no 5 is only provided when Blocked account is funded via education loan). Submit Form no 5 and form no 4 (account opening confirmation) to your education loan provider for funding.
  • Update the payment instruction in the portal to help RemitX team track your funds.
  • You will receive an email confirmation on the receipt of your funds
  • On receipt of funds, an email link will be sent to your registered email id to download your RemitX Blocked amount confirmation Form No 6.
  • Alternately, log in to your account to download your RemitX Blocked amount confirmation from “My Account”.

You can activate your blocked account only on Arrival in Germany. Log In to your RemitX Blocked account portal and upload below documents to activate your account:

  • Visa Copy received by the German Embassy (If not already uploaded)
  • Current bank account details held in Germany which includes IBAN and BIC code.
  • Copy of your Entry stamp in your passport
  • Copy of your registration certificate (Meldebestätigung)
  • Copy of certificate of enrolment (Immatrikulationsbescheinigung)

In Germany it is mandatory by Law to register your residence address or place of stay. The Meldebestätigung confirms that you registered your address in Germany. You get this document during your Anmeldung appointment.

You can get a Meldebescheinigung at the registry office (the “Bürgeramt”, the “Einwohnermeldeamt”, or the “Kreisverwaltungsreferat” if you’re in Munich or KVR or Kundenzentrum depending on the region or city. The procedure is simple: get an appointment at any Bürgeramt for "Meldebescheinigung beantragen”. You need to take a personal ID (such as your passport) and payment. Find your nearer registry office by inserting your postcode here

Meldebestätigung is often required to open a bank account (with some exceptions) or get a cell phone contract.

You receive an Anmeldebestätigung when you register your address in Berlin (this is called the Anmeldung). The document is printed out and given to you during the appointment.

The Anmeldebestätigung confirms that you registered an address on a certain date. The Meldebescheinigung confirms that you are still registered at this address. You only receive the Anmeldebestätigung once, but you can request a Meldebescheinigung anytime you want.

You can register your residence in Germany at Einwohnermeldeamt i.e. the local Resident Office Registration. It is recommended that you register your residence address within 2 weeks on your arrival in Germany. This is because REMITX Blocked account will require a copy of the residence registration also known as Meldebestätigung, so you can open and activate your Students Current Bank Account and Tax No. Click on to get the location of the closest the registration office to your place of stay.

There are basic documents that are required for your registration of residence. The documents are as below:

  • Registration form (Anmeldung)
  • Valid passport
  • Rental contract (Mietvertrag)
  • Wohnungsgeberbestätigung (landlord’s confirmation of residence)

The visa you got from German embassy in your home country is called student visa or entry visa. All international students must convert their student visa into study resident permit before student Visa expires. You can book an appointment online for applying the resident permit at the Foreigner office (Ausländerbehörde) website. On appointment date, you need to present all the documents as required to the officer and on satisfactory your residence permit (Aufenthaltstitel) will be provided on your passport.

The documents required for Residence Permit is as below:

  • Passport with a valid student visa
  • Statutory Health Insurance certificate (Versicherungsbescheinigung)
  • A biometric photograph
  • Student ID / certificate of enrolment
  • Blocked account amount certificate Form no 6.
  • Confirmation of registration (Meldebestätigung) from the Residents Registration Office
  • Rental agreement or Mietvertrag with the landlord
  • Application for a residence permit

The certificate of enrolment is documentary evidence of you being a student studying in Germany. It is also required for submission along with other documents when you visit the local Resident Registration office for registration of your place of stay.

The documents required for enrolment are as below:

  • Personal identification card or passport
  • Notification of admission
  • University entrance qualification: the original or a certified copy with a certified translation in German
  • passport size photos
  • Confirmation of SHI coverage by a public health insurance provider in Germany.

After submission of all the documents, you will receive a letter of confirmation which is your temporary student ID. The student card (Student ID) and certificate of enrolment (Immatrikulationsbescheinigung) will be received after few weeks through post.

Getting biometric pictures taken in Germany is easy. There are two easy methods as below:

  • At FotoFix machine: All you need to do is to find a FotoFix machine, insert 6 € in coins and sit for a few seconds. The machine will print 4 copies of your passport photo a minute later. These biometric photos are accepted for most German document’s offices, including visas, driving licences and passports.
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  • At the Bürgeramt / Ausländerbehörde: You can also find passport photo kiosks at the Bürgeramt. Find your Bürgeramt or Ausländerbehörde, then look for Fotoautomat on the information page. The machine will print 4 copies of your passport photo which are accepted for most German document’s offices, including visas, driving licences and passports.

In Germany, the health insurance is obligatory for all the residence including students. Most of the people in Germany hold public health Insurance or Statutory health insurance or Gesetzliche Krankenversicherung (GKV). After getting insured with the public insurance company you will get the certificate of insurance (Versicherungsbescheinigung) which is necessary for the process of enrolment (Immatrikulation) at the university.

In SHI Family members (non-working Spouse, Children’s) of the insured person will also be insured for free. In case she is a working spouse then she has to be insured separately.

  • The statutory health insurance (SHI) in Germany is based on the solidarity system. This means, the contributions (Premium you pay every month) are based on income and not based on risk.
  • Statutory health insurance is suitable for everyone and provides the same service to all its members regardless of contribution (Premium) and also all the basic medical necessities are covered.

The SHI providers in Germany are obligated to offer an affordable tariff for students. Once after you switched to private health insurance it can be difficult to switch back to Government health insurance in the future. Many students in India registered with public health insurance before arriving in Germany.

The Health Insurance will be charged to the student on a monthly fee basis. The monthly fee is regularly due to be paid on the 15th of every month for the past month. Thus, the premium of the statutory Health Insurance is always paid in arears.

The new Tax Collected at Source (TCS) provision under section 206C (1G) of the Income Tax Act on all forex products i.e. foreign currency notes, prepaid forex cards, remitting money overseas and demand drafts and is applicable with effect from 1st October, 2020. For the purpose of calculating the overall limit, transactions done during the entire financial year will be taken in to consideration.

TCS is applicable in the Liberalized Remittance Scheme (LRS) quota of the individuals (includes proprietary concern). LRS quota for all resident individuals is up to $2,50,000 per financial year. TCS will be collected once the amount exceeds ₹ 7 lakhs. The customer will have to pay 5% TCS on the transaction amount (+charges). In case of non-availability of PAN or Aadhaar, TCS will be charged at 10% on the transaction amount (+charges).  In cases where the amount is taken for the purpose of education through a loan which is obtained from any bank or financial institute registered under section 80E of the Income Tax Act, rate of TCS shall be 0.5 % on the amount exceeding Rs 7 lakhs.

For example, if you buy currency worth ₹ 10 lakhs, TCS will be applicable on ₹ 3 lakhs.

TCS will be collected from the traveler/remitter whose LRS is used for availing the Forex/Remittance.

Yes, TCS is applicable on Overseas Tour Package meaning, any tour package which offers a visit to a Country or Countries or Territory or Territories outside India. The customer will have to pay 5% TCS on the transaction amount (+charges). In case of non-availability of PAN or Aadhaar, TCS will be deducted at 10% on the transaction amount (+charges). There is no minimum threshold limit for tour operator to collect TCS on Overseas Tour packages.

For example, if you buy currency worth ₹ 3 lakhs, TCS will be applicable on ₹ 3 lakhs.

TCS is applicable on the amount exceeding ₹ 7 lakhs on the customers current financial year’s LRS limit. Rate of TCS is @ 5% of the forex amount including charges. Where the purpose is education and where the forex is procured through a loan obtained from any bank or financial institution which is registered under section 80E, the rate of TCS shall be 0.5% on the amount (exceeding ₹ 7 Lakhs).

Below are few scenarios to understand this better:

Scenario Forex purchased – period and amount TCS Implication
Customer A Purchases forex of ₹ 5,00,000 in September, 2020 No tax will be collected since TCS is applicable from October,2020 onwards
Customer B Purchased forex of ₹ 5,00,000 up to September, 2020 and does one more transaction of ₹ 3,00,000 in October, 2020 5% tax will be collected on ₹ 1,00,000 (5 lakhs + 3 lakhs = 8 lakhs)
Customer C Purchases forex of ₹ 10,00,000 in October, 2020 5% tax will be collected on ₹ 3,00,000 (₹ 10,00,000 - ₹ 7,00,000) i.e. ₹ 15,000
Customer D Purchases forex of ₹ 10,00,000 in September, 2020 and does another transaction of Rs. 6,00,000 5% tax will be collected 6,00,000 i.e. ₹ 30,000
Customer E Remits for the purpose of pursuing education through a loan obtained from a financial institute of ₹ 10,00,000. 0.5% TCS will be collected on ₹ 3,00,000 (₹ 10,00,000 - ₹ 7,00,000) i.e. ₹, 1500

GST will not be applicable to the TCS amount.

No TCS will be charged to the customer if his current financial year’s LRS limit is below ₹ 7 lakhs. Similarly, payments for foreign education originating an education loan from a financial institution in India are subject to a lower 0.5% TCS. Following are exempt:

  • The Central or State government
  • An Embassy, a High Commission, legation, commission, consulate or trade representative of a foreign State and a club
  • Local authority [as defined in explanation to section 10(20)]
  • Any other person as may be notified

Please note that TCS is not an additional charge and can be adjusted against your total income tax liability and claimed while filing your personal income tax returns.

TCS will not be reversed once debited. Customers can approach for refund from income tax authority by filing his personal income tax return.

The below documents are to be provided while doing the transaction online or must be handed over physically to our branch outlets:

  • Education loan sanction letter with student / parent name
  • Declaration on the LRS application from client that the source is from loan
  • Bank statement showing the source of funds as unutilized disbursed Education loan by a financial institute.
  • Certificate issued by the Income Tax authority where the financial institution has been registered under section 80E

Non-residents and Foreign Nationals (non-residents) will not be considered and TCS will not apply.

A Guaranteed Investment Certificate or GIC is a Canadian investment that offers a guaranteed rate of return over a fixed period of time.

According to Citizenship and Immigration Canada (CIC) guidelines under the Student Partners Program (SPP), you will require approximately $10,000 Canadian (CAD) per year, not including tuition fees, to cover your living expenses. This requirement is fulfilled through the purchase of a GIC.

The SPP is a joint pilot project between Citizenship and Immigration Canada’s visa offices in India and China and the Association of Canadian Community Colleges (ACCC).

The Canadian High Commission advises as follows:

Preferred option for proof of funds: Evidence of purchase of a special Guaranteed Investment Certificate (GIC) from a participating Canadian financial institution (bank), in the amount of $10,000 CAD to cover living expenses for your first year in Canada and evidence of payment for your first year’s tuition.

As an alternate option, one can fulfil the financial requirement by submitting a copy of the receipt for the first year’s tuition fee and a copy of an Educational Loan from an Indian Chartered Bank equivalent to $10,000 CAD

The student must submit the following documents:

  • Signed copy of the GIC Application Form
  • Copy of passport (front & back)
  • Copy of acceptance letter from a Canadian educational institution

An administrative fee will be charged post the refund is completed. The intermediary banks may charge additional fees during the refund. The refund amount will be returned to the student’s bank account at the bank where the original remittance was made.

Upon arrival in Canada, you will need to visit the branch of the bank to open a personal deposit account and to activate the GIC. At the bank you will be required to provide an original valid passport, Letter of Acceptance to a Canadian educational institution (or student ID) and Welcome Package (sent with GIC certificate).
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