{"id":40385,"date":"2026-02-05T12:32:11","date_gmt":"2026-02-05T17:32:11","guid":{"rendered":"https:\/\/www.indianeagle.com\/travelbeats\/?p=40385"},"modified":"2026-02-05T14:03:21","modified_gmt":"2026-02-05T19:03:21","slug":"how-much-tcs-to-pay-on-foreign-travel-from-india","status":"publish","type":"post","link":"https:\/\/www.indianeagle.com\/travelbeats\/how-much-tcs-to-pay-on-foreign-travel-from-india\/","title":{"rendered":"International Travel from India Gets Cheaper in 2026 as TCS Rates Drop to 2% on Tour Packages"},"content":{"rendered":"<p><strong>India\u2019s Union Budget 2026 ushered in a new era of simplified customs rules and taxation for international travel.<\/strong> Both the customs duty and TCS (Tax Collected at Source) have been significantly reduced to encourage inbound and outbound travel for Indians, starting 1 April 2026. On one hand, the customs duty on foreign imports has been halved from the basic 20% to 10% for resident Indians and NRIs, under the <span style=\"color: #ff6600;\"><a style=\"color: #ff6600;\" href=\"https:\/\/www.indianeagle.com\/travelbeats\/new-customs-duty-and-duty-free-limit-for-carrying-foreign-items-to-india\/\" target=\"_blank\" rel=\"noopener\">new baggage rules<\/a><\/span>. On the other, the TCS rate on overseas travel from India got a major cut.<\/p>\n<h3><strong>What is TCS on foreign travel from India?<\/strong><strong>\u00a0<\/strong><\/h3>\n<p>In India, Tax Collected at Source (TCS) is an advance tax collected on your overseas travel expenses. It applies primarily to international tour packages, like <span style=\"color: #ff6600;\"><a style=\"color: #ff6600;\" href=\"https:\/\/indianeagle.com\/unlock-dubai\" target=\"_blank\" rel=\"noopener\">Dubai Experience<\/a><\/span>, booked from India. The tax is deposited with the government under your PAN and can later be adjusted or refunded when you file your income tax return. TCS is not an additional cost, but a temporary collection to ensure your tax compliance and track your international travel spending.<strong>\u00a0<\/strong><\/p>\n<figure id=\"attachment_40393\" aria-describedby=\"caption-attachment-40393\" style=\"width: 1600px\" class=\"wp-caption alignnone\"><img loading=\"lazy\" loading=\"lazy\" decoding=\"async\" class=\"size-full wp-image-40393\" src=\"https:\/\/blogbox.indianeagle.com\/wp-content\/uploads\/2026\/02\/Indias-TCS-rules-for-foreign-travel.png\" alt=\"India's travel TCS rules, TCS rates on foreign travel from India, TCS on overseas tour packages\" width=\"1600\" height=\"1008\" srcset=\"https:\/\/blogbox.indianeagle.com\/wp-content\/uploads\/2026\/02\/Indias-TCS-rules-for-foreign-travel.png 1600w, https:\/\/blogbox.indianeagle.com\/wp-content\/uploads\/2026\/02\/Indias-TCS-rules-for-foreign-travel-300x189.png 300w, https:\/\/blogbox.indianeagle.com\/wp-content\/uploads\/2026\/02\/Indias-TCS-rules-for-foreign-travel-1024x645.png 1024w, https:\/\/blogbox.indianeagle.com\/wp-content\/uploads\/2026\/02\/Indias-TCS-rules-for-foreign-travel-768x484.png 768w, https:\/\/blogbox.indianeagle.com\/wp-content\/uploads\/2026\/02\/Indias-TCS-rules-for-foreign-travel-1536x968.png 1536w, https:\/\/blogbox.indianeagle.com\/wp-content\/uploads\/2026\/02\/Indias-TCS-rules-for-foreign-travel-640x403.png 640w, https:\/\/blogbox.indianeagle.com\/wp-content\/uploads\/2026\/02\/Indias-TCS-rules-for-foreign-travel-860x542.png 860w, https:\/\/blogbox.indianeagle.com\/wp-content\/uploads\/2026\/02\/Indias-TCS-rules-for-foreign-travel-24x15.png 24w, https:\/\/blogbox.indianeagle.com\/wp-content\/uploads\/2026\/02\/Indias-TCS-rules-for-foreign-travel-36x23.png 36w, https:\/\/blogbox.indianeagle.com\/wp-content\/uploads\/2026\/02\/Indias-TCS-rules-for-foreign-travel-48x30.png 48w, https:\/\/blogbox.indianeagle.com\/wp-content\/uploads\/2026\/02\/Indias-TCS-rules-for-foreign-travel-150x95.png 150w\" sizes=\"auto, (max-width: 1600px) 100vw, 1600px\" \/><figcaption id=\"caption-attachment-40393\" class=\"wp-caption-text\">The AI-generated image is for only illustration purpose<\/figcaption><\/figure>\n<h3><strong>Old TCS vs New TCS rates on foreign tours in 2026<\/strong><strong>\u00a0<\/strong><\/h3>\n<p>Old TCS rates: Before the Union Budget 2026, TCS on overseas tour packages applied in slabs:<\/p>\n<ul>\n<li>5% TCS on tour packages costing up to \u20b910 lakh in a fiscal<\/li>\n<li>20% TCS on tour package prices exceeding \u20b910 lakh in a fiscal<\/li>\n<\/ul>\n<p><strong>Earlier, a foreign tour of \u20b920 lakh would attract \u20b92.5\u20133 lakh as TCS. It meant a large upfront cash outflow for <\/strong>expensive family or luxury trips.<\/p>\n<p>New travel TCS rates: The Union Budget 2026 removed the slabs by introducing a flat 2% TCS on international travel packages, regardless of total costs. The slab system and the \u20b910 lakh threshold have been eliminated from the system. There is no minimum booking value for the new 2% TCS.<strong>\u00a0<\/strong><\/p>\n<h3><strong>Know how much TCS to pay on foreign trips from India in 2026:<\/strong><strong>\u00a0<\/strong><\/h3>\n<ul>\n<li>\u20b910,000 TCS on \u20b95 lakh overseas tour package<\/li>\n<li>\u20b920,000 TCS on \u20b910 lakh overseas tour package<\/li>\n<li>\u20b940,000 TCS on \u20b920 lakh overseas tour package<\/li>\n<\/ul>\n<p><strong>The flat 2% TCS on international trips clearly denotes that booking <span style=\"color: #ff6600;\"><a style=\"color: #ff6600;\" href=\"https:\/\/indianeagle.com\/unlock-dubai\" target=\"_blank\" rel=\"noopener\">tour packages for Dubai<\/a><\/span>, Singapore, Bali, Sri Lanka, or Europe from India will be a lot cheaper for Indians, starting in April 2026.<\/strong><\/p>\n<p><strong>Is there TCS on booking international flights from India?<\/strong><strong>\u00a0<\/strong><\/p>\n<p>\u201cAs per the TCS rules for foreign travel, there is no TCS on booking international flight tickets from India and the usage of non-Indian credit cards for the same. The TCS rate applies on overseas tour packages including hotels, sightseeing, local transportation, and\/or flights,\u201d said Dheeraj Duvvuru, CEO of <span style=\"color: #ff6600;\"><a style=\"color: #ff6600;\" href=\"https:\/\/www.indianeagle.com\/\" target=\"_blank\" rel=\"noopener\">Indian Eagle<\/a><\/span>, a leading international travel tech company booking budget air travel between USA, India and other countries.<\/p>\n<blockquote><p><strong>Alongside the reduced TCS on international tours in 2026, you can save more by traveling to <span style=\"color: #ff6600;\"><a style=\"color: #ff6600;\" href=\"https:\/\/www.indianeagle.com\/travelbeats\/visa-on-arrival-and-visa-free-countries-for-green-cardholders\/\" target=\"_blank\" rel=\"noopener\">visa-free countries<\/a><\/span> like Singapore, Thailand, Taiwan, Qatar, Sri Lanka, and the Philippines from India, since no visa cost is involved.<\/strong><\/p><\/blockquote>\n","protected":false},"excerpt":{"rendered":"<p>India\u2019s Union Budget 2026 ushered in a new era of simplified customs rules and taxation for international travel. Both the customs duty and TCS (Tax Collected at Source) have been significantly reduced to encourage inbound and outbound travel for Indians, starting 1 April 2026. On one hand, the customs duty on foreign imports has been [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":40393,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_uag_custom_page_level_css":"","_uf_show_specific_survey":0,"_uf_disable_surveys":false,"footnotes":""},"categories":[3],"tags":[],"class_list":{"0":"post-40385","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-faqs"},"aioseo_notices":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v26.6 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>How Much TCS to Pay on Foreign Tours from India in 2026? 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On one hand, the customs duty on foreign imports has been [&hellip;]\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.indianeagle.com\/travelbeats\/how-much-tcs-to-pay-on-foreign-travel-from-india\/\" \/>\n<meta property=\"og:site_name\" content=\"Travel to India, Cheap Flights to India, Aviation News, India Travel Tips\" \/>\n<meta property=\"article:published_time\" content=\"2026-02-05T17:32:11+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2026-02-05T19:03:21+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/blogbox.indianeagle.com\/wp-content\/uploads\/2026\/02\/Indias-TCS-rules-for-foreign-travel.png\" \/>\n\t<meta property=\"og:image:width\" content=\"1600\" \/>\n\t<meta property=\"og:image:height\" content=\"1008\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/png\" \/>\n<meta name=\"author\" content=\"Indian Eagle\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Indian Eagle\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"3 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.indianeagle.com\/travelbeats\/how-much-tcs-to-pay-on-foreign-travel-from-india\/\",\"url\":\"https:\/\/www.indianeagle.com\/travelbeats\/how-much-tcs-to-pay-on-foreign-travel-from-india\/\",\"name\":\"How Much TCS to Pay on Foreign Tours from India in 2026? 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Both the customs duty and TCS (Tax Collected at Source) have been significantly reduced to encourage inbound and outbound travel for Indians, starting 1 April 2026. 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