Money

Budget cuts tax collected at source for foreign tour packages to a uniform 2%

February 1, 2026

The Union Budget 2026 has proposed a significant reduction in the Tax Collected at Source (TCS) for foreign tour packages, lowering it from a tiered rate of 5% and 20% to a uniform 2%. This change is expected to alleviate the financial burden on travelers and simplify tax compliance, also extending to educational and medical expenses under the liberalized remittance scheme.

Budget cuts tax collected at source for foreign tour packages to a uniform 2%

Credit: Livemint

Key Highlights

TCS on foreign tour packages reduced to a flat 2%.
Previous rates were 5% for packages up to ₹10 lakh and 20% for amounts exceeding ₹10 lakh.
The reduction aims to ease tax burdens for travelers and the outbound leisure industry.
TCS for education and medical expenses abroad also cut to 2% under the liberalized remittance scheme.
The changes were announced by Finance Minister Nirmala Sitharaman.

Economy Budget

Sources

This quick summary is automatically generated using AI based on reports from multiple news sources. The content has not been reviewed or verified by humans. For complete details, accuracy, and context, please refer to the original published articles.

Budget cuts tax collected at source for foreign tour packages to a uniform 2%

Key Highlights

Sources

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