Budget 2026: TCS on overseas tour packages reduced to 2%
Big news for travelers—Finance Minister Nirmala Sitharaman just announced that the Tax Collected at Source (TCS) on overseas tour packages is now a flat 2%.
That's down from the old rates of 5% (up to ₹10L) and a hefty 20% for anything above.
The goal? Make booking trips abroad simpler and more affordable, especially for students, families, and anyone planning their first big adventure.
Positive impact on students, families
This lower TCS rate also covers money sent abroad for education or medical needs under the Liberalized Remittance Scheme.
So if you're dreaming of studying overseas or need treatment outside India, your upfront costs just got lighter.
Travel companies are pretty happy too—they say this will boost demand and make things easier for everyone.
Overall, it's a welcome change that makes global experiences more accessible without draining your wallet.