How it works
From 1 April 2026, an overseas tour package bought from an Indian seller attracts TCS at 2% of the package value, with no threshold. Forex and other LRS spends for your own travel attract no TCS up to ₹10 lakh per person per financial year, and 20% above that. TCS is credited against your income tax and can be claimed in your ITR.
TCS collected
₹5,000
2% of the package value — no threshold
You pay at booking
₹2,55,000
Before GST on the package, which is separate
TCS is not a cost: it is credited against your income-tax liability and shows in Form 26AS / AIS. Claim it in your ITR, or get it refunded if you owe no tax. Rates as per the Finance Act 2026, effective 1 April 2026 — confirm with your tax adviser for your case.
Frequently asked questions
Is TCS an extra cost on my foreign trip?
No. TCS is an advance collection of income tax. It appears in your Form 26AS and AIS and is adjusted against your tax liability when you file your return; if you owe less tax, the balance is refunded.
What is the TCS rate on overseas tour packages from April 2026?
Under the Finance Act 2026, TCS on overseas tour packages sold by Indian operators is 2% of the amount, from the first rupee, replacing the earlier 5% and 20% slabs. Always confirm the rate in force on your invoice date.
Does TCS apply if I pay by international credit card abroad?
Spends on an international credit card while abroad are currently outside the LRS TCS net. Forex cards, cash and remittances count towards LRS.
Can a family split payments to avoid TCS?
The ₹10 lakh nil-TCS threshold on forex and other LRS spends applies per person, so each adult paying from their own account has their own threshold. Overseas tour packages attract 2% regardless of who pays.