The Union Budget has brought good news for Indians planning to travel abroad. The Finance Minister announced a sharp cut in the Tax Collected at Source (TCS) on overseas tour programme packages, making foreign travel more affordable and simpler from a tax point of view.
Under the new proposal, the TCS rate on overseas tour packages will be reduced from the current 5% and 20% to a flat 2%, without any minimum amount condition. This means travellers will now have to pay much less tax upfront when booking international tour packages.