Budget 2026: TCS Slashed to 2% for Overseas Tours, Education, Medical Remittances

• Finance Minister Nirmala Sitharaman announced a significant reduction in Tax Collected at Source (TCS) rates in Budget 2026.
• TCS on overseas tours, education, and medical remittances under the Liberalised Remittance Scheme (LRS) has been cut from 5% to 2%.
• For foreign travel packages, the TCS is now 2%, down from previous rates of 5% and 20%, with no minimum amount condition.
• This reduction lowers the upfront financial burden for families sending money for education/medical treatment and for those booking international holidays.
• The move is expected to reduce refund delays and simplify tax compliance for individuals.

Why It Matters: Budget 2026 slashes TCS to 2% for overseas tours, education, and medical remittances, easing financial burden.