International Travel Cheaper: TCS on Tour Packages Cut to 2% in Budget 2026

• Finance Minister Nirmala Sitharaman announced a significant cut in Tax Collected at Source (TCS) on international tour packages to a flat 2% in Budget 2026.
• The new rate replaces the existing 5% and 20% slabs, and the minimum transaction threshold has been removed, making it uniform for all package values.
• This change is expected to reduce upfront costs for travellers, improve affordability, and simplify overseas trip bookings.
• The travel industry anticipates a revival in outbound travel demand, especially from middle-income households, and smoother booking cycles.
• TCS on remittances for education and medical purposes under the Liberalised Remittance Scheme (LRS) has also been reduced from 5% to 2% for amounts exceeding Rs 10 lakh.

Why It Matters: Budget 2026 slashes TCS on international tour packages to 2%, making overseas travel more affordable.