Budget 2026 Brings Relief For Foreign Travel And NRIs
New Delhi / Hyderabad, Feb 1 (Maxim News) : The Union Budget 2026 has delivered significant relief for overseas travellers and Non Resident Indians by sharply reducing the Tax Collected at Source rate on foreign remittances.
Finance Minister Nirmala Sitharaman announced that the TCS rate under the Liberalised Remittance Scheme has been reduced to two percent.
As a result, individuals planning international travel will face a lower tax burden.
Budget 2026 Cuts TCS on Foreign Travel and Remittances
Earlier, TCS on foreign tour packages ranged between five percent and twenty percent. However, the government has now brought the rate down to two percent. Therefore, international travel packages will become more affordable for Indian travellers.
Moreover, the revised TCS rate will benefit students pursuing education abroad. It will also ease expenses for patients travelling overseas for medical treatment.
In addition, the government has reduced the TCS rate to two percent on remittances sent for foreign education and medical expenses under the Liberalised Remittance Scheme. This move aims to support genuine overseas spending while improving cash flow for families.
Overall, the Budget 2026 decision seeks to encourage global mobility. At the same time, it reduces the immediate financial strain on individuals sending money abroad for essential needs. (Maxim News)
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