Money
TCS on foreign tour packages is now 2%: what it means for you
From 1 April 2026, TCS on overseas tour packages dropped to a flat 2%. Here is how it works and how to get it back.
Tax collected at source, or TCS, is collected by your tour operator when you buy an overseas tour package, and deposited against your PAN with the Income Tax Department.
What changed
Following Union Budget 2026-27, TCS on overseas tour packages is a flat 2% from the first rupee, from 1 April 2026. Earlier it was 5% up to ₹10 lakh and 20% above that.
An example
On a ₹2,00,000 Australia package, TCS is now ₹4,000. Under the old 5% rate it would have been ₹10,000.
Is it an extra cost?
No. TCS is an advance tax. It appears in your Form 26AS and you can adjust it against your tax liability or claim a refund when you file your return. Keep your PAN handy when you book, because it is mandatory.
Domestic holidays carry GST only, with no TCS.