TCS ON OVERSEAS TOUR PACKAGE

New 20% TCS rule from October 1, 2023: 4 tips to bring down TCS to zero during your next international trip

20% TCS on overseas tour package: When you book, offline or online, overseas tour packages, offline or online, of more than Rs 7 lakh in a financial year, you have to pay TCS at 20% from October 1, 2023. Is there any way to reduce this additional upfront cost? Here are a few tips which will help you lower your TCS burden while travelling abroad. Read on to find out.

New TCS rules have kicked in: Here's what gets costlier and what remains same

Starting October 1, 2023, new tax collection at source (TCS) rates will affect various financial transactions, such as international travel, investments in foreign assets, and educational expenses abroad. Under the Liberalised Remittance Scheme (LRS), individuals can remit up to $250,000 in a financial year.

Higher TCS applies to overseas expenditure starting October 1: How will it affect your study abroad budget?

Parents sending money for other living expenses will face the 20% TCS unless they can prove it is for educational purposes. To mitigate the impact, parents can use international cards, maintain transaction records, use the correct LRS code, and be prepared for income tax returns.

Travel firms urge govt to defer TCS on overseas trips

Travel firms and operators in India are seeking a deferment of the October 1 deadline for a 20% tax collected at source (TCS) on spending above Rs 7 lakh on overseas tours. They argue that there is no proper mechanism to monitor spending across multiple sources, and that the responsibility for tracking these expenses should lie with the banking system rather than travel operators.

New 20% TCS rule from October 1, 2023: Know TCS rates on international trips, forex payments, debit, credit card, education, foreign investments

Starting from October 1, 2023, all overseas outward remittances, except for medical and educational purposes, over a threshold limit of Rs 7 lakh in a financial year will attract a tax collection at source (TCS) of 20%. From international trips to investments in foreign stocks, mutual funds, or cryptocurrencies abroad, or higher education, know how much TCS you have to pay from October 1, 2023.

Govt should consider lowering TCS on overseas tour packages to increase outbound tourism: Report

The growth in the Indian travel and tourism industry is driven by a combination of rising income levels and changing lifestyles, development of diverse tourism offerings and policy and regulatory support by the government authorities, it added.

No TCS on foreign remittances of up to Rs 7 lakh, credit card spending overseas; higher rates to kick in from October 1

TCS on foreign remittances: There will be no tax collection at source (TCS) on foreign remittances of up to Rs 7 lakh per financial year, said Ministry of Finance. It has clarified that transactions done through international credit cards while being overseas would not be counted as LRS transactions and hence not subject to TCS. For overseas tour package, a TCS of 5 per cent will be levied if the amount is up to Rs 7 Lakh. The higher rate of TCS will come into effect from October 1, 2023.

Govt clarifies how TCS will be applicable on flight tickets, hotel bookings during international trips, hostel expenses, other foreign remittances

Earlier this week, the ministry said that there will be TCS on foreign remittances of up to Rs 7 lakh per financial year. Further, it also added that the increased rates TCS will come into effect from October 1, 2023

Overseas spending using credit card won't attract TCS

Banks and the Reserve Bank had flagged the difficulty in executing the TCS regime on credit cards to the government. The finance ministry on May 16 scrapped Rule 7 of the Foreign Exchange Management (Current Account Transactions) Rules, 2000, which kept international credit card spends out of the LRS ambit.

Govt defers implementation of new TCS rate on foreign remittances till Oct 1, 2023

3 ways to avoid the 20% TCS on overseas tour packages effective July 1, 2023

Starting from July 1, 2023, a tax collected at sources (TCS) of 20 per cent will apply to overseas tour packages. If you are planning to take an international trip soon, you must understand this new rule and how you can use it in the most efficient way to save your hard-earned money. Here are the 3 ways to avoid 20% TCS during your next international trip

EaseMyTrip eyes ‘significant’ revenue boost from new insurance business, COO Lokendra Saini says

EaseMyTrip, an Indian travel aggregator, expects a significant revenue boost from general insurance business that it is set to roll out. COO Lokendra Saini said insurance is a natural addition to travel-related products as customers want insurance for their lives, journeys and fulfilment. EaseMyTrip has also suggested alternatives to the government for new 20% TCS levied on overseas travel, a levy that is likely to hurt the industry.

You have to pay more for foreign tour packages from July 1, 2023: How to book smartly to save better

If you are buying a foreign tour package from a travel agent, you have to pay a tax collection at source (TCS) of 20% from July 1, 2023. Budget 2023 has hiked the TCS rate for foreign remittances under the LRS from 5% to 20% (except for education and medical purposes). With this sharp rise in TCS, foreign trips are likely to become costlier soon.

Travel industry seeks removal of 20% TCS on overseas packages

"The TCS should be completely abolished or should be kept at a notional rate of 0.1% which will still meet the government objective of checking for tax evaders without penalising Indian tour and travel agents," said Aashish Gupta, consulting CEO of Federation of Associations in Indian Tourism & Hospitality (FAITH).

Changes in FEMA rules: Debit, credit cards to have parity; business visits of employees exempted from LRS

The ministry said since credit card spending overseas has now been brought under LRS, such remittances would be liable to tax collected at source (TCS) at applicable rates. If the TCS payee is a taxpayer, he or she can claim credit and adjust it against his/her I-T or advance tax liability.

Credit card payments on foreign tours may be brought under LRS to ensure compliance with TCS

The Union Budget 2023 proposed a TCS for foreign outward remittance under LRS other than for Education and medical purposes of 20 per cent applicable from July 1, 2023. Before this proposal, the TCS of 5 per cent was applicable on foreign outward remittances above Rs 7 lakh.

IATO writes to PM, appeal to restore incentives for revival of tourism

IATO president Rajiv Mehra wrote that these steps would place the tourism industry at par with foreign tour operators and help them compete with the neighbouring countries.

FAITH urges government to withdraw TCS hike imposed on overseas tour packages

FAITH, the industry body, added that the step of raising the TCS has greatly undermined the business prospects of Indian tour operators who were just seeing revival after reeling long under the impact of pandemic.

Travel cos urge government to review move to raise TCS on overseas tour packages

"We have sent a request to CBDT on March 8 asking them to reconsider this proposal. Besides tour operators, it's going to be a losing proposition for the government as people will take the other route and will book through overseas operators directly," said Riaz Munshi, president, Outbound Tour Operators Association of India (OTOAI).

Budget 2023: Want to send money abroad? It will cost you more now

As per the Budget proposal, banks remitting funds overseas will have to collect tax at source at 20% without the applicability of any threshold limit. This amendment will take effect from 1st July, 2023.

Overseas tour packages could get costlier for travellers

Travel Agents Association of India (TAAI) president Jyoti Mayal said she was shocked that instead of abolishing it, the government had raised the TCS from 5% to 20%. “For foreign remittances for other purposes under LRS and purchase of overseas tour programme, the TCS rates are proposed to go up from 5% to 20%, which is going to be detrimental for our business.

Budget proposes hike in TCS on overseas travel, fund remittances out of India to 20%

Also, 20 per cent TCS will be applicable in cases where funds in excess of Rs 7 lakh are sent out of India under the Liberalised Remittance Scheme of the RBI.

IATO hails govt decision to scrap TCS on sale of overseas tour packages to foreign tour operators

IATO said a lot of foreigners book overseas tour packages for neighbouring countries like Bhutan, Nepal and Maldives through Indian tour operators. But since there was a levy, they preferred booking the tours directly with tour operators in those countries as there was no such charge there.