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Travel glossary

TCS on overseas tour packages

TCS (tax collected at source) is collected by the seller of an overseas tour package from the Indian buyer. From 1 April 2026 it is a flat 2% from the first rupee.

Before 1 April 2026, TCS on overseas tour packages was charged in slabs of 5% and 20%. Budget 2026 replaced these with a flat 2%. The buyer can claim TCS against their income tax.

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What is TCS on overseas tour packages?

TCS (tax collected at source) is collected by the seller of an overseas tour package from the Indian buyer. From 1 April 2026 it is a flat 2% from the first rupee.

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