Overseas Travel Cheaper: Budget 2026 Slashes TCS on Tour Packages, LRS Remittances

• Union Budget 2026 proposes a significant reduction in Tax Collected at Source (TCS) for international travel and remittances.
• TCS on overseas tour packages will be cut to a flat 2% from the previous slab-based rates of 5% and 20%, with no minimum threshold.
• TCS on remittances for education and medical purposes under the Liberalised Remittance Scheme (LRS) will also be reduced from 5% to 2%.
• The changes aim to make international travel, studying abroad, and medical treatments more affordable and ease cash-flow pressure for individuals.
• Other proposals include reducing tariff rates on imported goods for personal use, exempting customs duty on certain drugs, and revising baggage clearance rules.

Why It Matters: Budget 2026 makes overseas travel, education, and medical remittances significantly cheaper by reducing TCS to 2%.