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Union Budget 2026 slashes TCS on foreign education and medical remittances to just 2 percent
Economy
Published on 24 April 2026
Big drop from 5 percent to 2 percent
Union Budget 2026 brings relief for Indians sending money abroad under the Liberalised Remittance Scheme. TCS for overseas education and medical expenses falls to 2 percent from 5 percent, easing the upfront tax burden. The budget also streamlines TDS for businesses providing manpower services, fixing taxes at 1 percent or 2 percent under contractor provisions.
- LRS overseas education and medical TCS reduced to 2 percent
- Rate cut from 5 percent to lower the upfront tax
- Manpower services firms get simpler TDS taxation
- Contractor provisions set tax at 1 percent or 2 percent
Read the full story at The Economic Times
This summarization was done by Beige for a story published on 
The Economic Times