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Budget 2026 cuts overseas tour TCS to flat 2 percent slashing costs for Indian travellers
Economy
Published on 24 April 2026
TCS on foreign tour packages falls from up to 20%
Union Budget 2026 reduces Tax Collected at Source (TCS) for overseas tour packages, setting a flat 2% rate on international travel. The move lowers the prior TCS structure, which ranged from 5% to as high as 20%, making foreign trips more affordable for Indian citizens and easing the upfront tax burden.
- Overseas tour package TCS is reduced to a flat 2%
- The earlier TCS rates of 5% and 20% are replaced
- Indian travellers may see lower upfront tax costs
- Budget 2026 offers relief for international travel planning
Read the full story at The Economic Times
This summarization was done by Beige for a story published on 
The Economic Times