If an international vacation has been on your wishlist, the Union Budget 2026–27 brings good news for you. The government has reduced the extra tax burden that travellers usually face while booking international tour packages, making travel lighter on the pocket and simpler to plan.
Finance Minister Nirmala Sitharaman announced a major cut in the Tax Collected at Source (TCS) on overseas tour packages. The rate has now been brought down to 2%, offering instant relief to travellers booking trips abroad.
Budget 2026 Travel Update
Earlier, booking an international tour package often meant paying a high amount upfront as tax. The system was divided into slabs for travellers. Here are the earlier and new budget updates.
As per the Old TCS Structure:
- If the trip would cost Rs 10 Lakh, you would be charged 5% TCS.
- If the trip with all expenses is above Rs 10 lakh then it would charged a steep 20% TCS.
- These costs covered flights, hotels, meals, sightseeing, and other travel-related services, making family trips especially expensive at the booking stage.
New Budget 2026:
- The government has now simplified the system by providing flat 2% TCS for all overseas tour packages.
- No minimum booking value required
- This means the same tax applies whether you’re planning a short international getaway or a luxury holiday.
Union Budget 2026–27 Benefits to Travellers
The biggest advantage of this change is that travellers no longer need to spend a large amount of money when booking international trips. The reduced TCS allows people to manage travel expenses more comfortably. Some of the key benefits include lower upfront payment for foreign trips, easier budgeting for international vacations, and better access for first-time and middle-income travellers.
The new simplified tax rule is likely to improve international travel bookings. As global travel continues to pick up, these measures are expected to encourage more Indians to explore destinations abroad without worrying about heavy upfront costs.
Budget 2026 may have made overseas travel a little more affordable. With lower TCS rates, this could be the right time to start planning your next journeys from the USA to India or any other destination. By choosing trusted online ticket booking agencies like Indian Eagle deals you can make your upcoming trip more budget-friendly. Why wait? Plan your trip now and book your flights to your favored destination.
Frequently Asked Questions
What is the TCS rate on overseas tour packages after Budget 2026?
After Budget 2026-27, the TCS on overseas tour packages has been reduced to a flat 2%, replacing the earlier higher slabs.
How does the TCS cut in Budget 2026 impact international travel costs?
The lower TCS reduces upfront booking expenses, making international travel more affordable and easier to plan for Indian travellers.
Is there any minimum booking amount for TCS on overseas travel in Budget 2026?
No. Budget 2026 removes the minimum transaction limit, so the 2% TCS applies to all overseas tour packages.
Who benefits the most from the overseas travel TCS reduction?
Families, first-time international travellers, students, and holidaymakers booking international trips benefit the most from the reduced TCS.
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