New Delhi: Tax deductions on foreign remittances for purposes such as education, medical expenses, and investments will now be eased.

The threshold for tax-free remittances has been raised from Rs 7 lakh to Rs 10 lakh annually. As a result, any remittance up to Rs 10 lakh per year will not incur a tax deduction.

The tax rates remain unchanged: 5 percent for medical purposes and 20 percent for investments and foreign travel.

Additionally, remittances for education purposes, when funded through loans from financial institutions, will continue to enjoy a full tax exemption.