Budget 2026: Foreign Travel, Overseas Education Now Cheaper with Reduced TCS

With these changes, Budget 2026 aims to make foreign travel more affordable for Indian households and reduce the financial burden on students and families pursuing education and medical treatment overseas, while continuing to track cross-border transactions.

Budget

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Moneycontrol•01-02-2026, 21:55

Budget 2026: Foreign Travel, Overseas Education Now Cheaper with Reduced TCS

•Union Finance Minister Nirmala Sitharaman announced significant tax measures in Budget 2026 to ease financial burdens for Indian travellers and students.
•Tax Collection at Source (TCS) on overseas tour packages has been sharply reduced to 2% from 5% and 20%, with no threshold limit.
•TCS for education and medical remittances under the Liberalised Remittance Scheme (LRS) is also cut from 5% to 2%.
•These changes aim to make foreign travel more affordable and reduce cash-flow pressures for students and families seeking overseas education or medical treatment.
•Experts like Amit Gupta and Lokesh Shah lauded the move, highlighting reduced upfront tax burdens and improved liquidity for international spending.

Why It Matters: Budget 2026 significantly lowers TCS on foreign travel and overseas education/medical remittances, making them more affordable.

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