Budget Boost: Overseas Travel, Study Cheaper with Reduced TCS

• Finance Minister Nirmala Sitharaman announced a reduction in Tax Collected at Source (TCS) on overseas tour packages from 5-20% to 2%, with no minimum amount condition.
• TCS on education and medical remittances under the Liberalised Remittance Scheme (LRS) has also been cut from 5% to 2%.
• This reduction lowers upfront deductions for families sending money abroad for studies or medical treatment, easing cash flow.
• The move aims to make international travel more affordable and reduce the financial burden on middle-class families funding overseas education or medical care.
• The travel and tourism sector anticipates a rise in bookings and improved liquidity due to the reduced upfront costs, contributing to economic growth.

Why It Matters: Nirmala Sitharaman's budget significantly reduces TCS on overseas travel, education, and medical remittances.