Overseas Remittances Get Tax Relief: What It Means for Travelers and Students

• Tax Collected at Source (TCS) on certain overseas payments under LRS reduced from April 1.
• TCS on overseas tour packages now a flat 2%, replacing earlier 5% and 20% slab rates.
• Remittances for education and medical purposes abroad now attract a lower TCS of 2% (previously 5%).
• Lower TCS improves short-term liquidity for individuals, especially for high-value transactions.
• Experts note that while TCS is reduced, foreign exchange markups and other charges still impact overall remittance costs.