Union Budget sets 2% TCS on overseas education and travel
Sending money abroad for studies or travel is about to get a bit easier on your wallet.
Starting April 1, 2026, the Tax Collected at Source (TCS) on overseas remittances for education and travel under the Liberalized Remittance Scheme will be a simple flat 2%, replacing the earlier tiered 5%-20% structure that applied to overseas tour packages.
This move, announced in the Union Budget 2026-27, is meant to make things less stressful for anyone transferring money abroad for education or travel.
Taneia Bhardwaj warns on remittance markups
With this new rule, upfront tax deductions will drop, so if your family sends ₹30 lakh abroad for tuition, you'll pay ₹60,000 in TCS instead of ₹1.5 lakh.
But before you celebrate those savings, Taneia Bhardwaj from Wise reminds everyone to watch out for hidden costs like exchange rate markups.
Her advice? Make sure you understand all charges and pick service providers with transparent pricing so you really benefit from the lower TCS.