What is TCS on overseas travel for Indian residents?

TCS (Tax Collected at Source) under Section 206C(1G) of the Income Tax Act is collected by tour operators / authorized dealers when an Indian resident spends on overseas travel. Current slabs (FY 2026): 5% on travel packages up to ₹10 lakh, 20% above that. Forex card loads + other LRS remittances: 20% above ₹7 lakh threshold per financial year.

Yes. TCS is fully claimable as a credit against your final income-tax liability when filing your Income Tax Return (ITR). It is not an additional tax — it is collected on account and refunded against TDS / advance tax in the same financial year.

What about TCS on forex cards?

Forex card loads + cash currency purchases for overseas use are LRS (Liberalised Remittance Scheme) transactions. TCS is 20% above the ₹7 lakh cumulative threshold per financial year. Below ₹7 lakh: no TCS on forex card loads.

TCS Calculator for Overseas Travel from India 2026

Free calculator for Tax Collected at Source on overseas tour packages + forex card loads. Per Income Tax Act Section 206C(1G), updated FY 2026 slabs.

Quick Answer Indian residents pay 5% TCS on overseas tour packages up to ₹10 lakh, 20% above ₹10 lakh. Forex card loads + LRS remittances: 20% above ₹7 lakh per financial year. TCS is fully refundable against income-tax liability when filing your ITR. Standalone flight tickets (not bundled in a tour package) attract NO TCS.

TCS slabs (FY 2026, India)

Type of Spend	Threshold	TCS Rate
Overseas tour package	Up to ₹10 lakh / FY	5%
Overseas tour package	Above ₹10 lakh / FY	20%
Forex card + LRS	First ₹7 lakh / FY	NIL
Forex card + LRS	Above ₹7 lakh / FY	20%
Standalone flight ticket	—	NIL (not a tour package)

FAQ

Is TCS refundable?

Yes. TCS is creditable against your income-tax liability when filing your ITR. It functions exactly like TDS — collected on account, refunded against your final tax.

Does TCS apply to flight tickets?

Only if the flight is part of a bundled tour package (with hotel/transfer). Standalone tickets purchased directly from an airline or OTA do NOT attract TCS.

What is LRS?

Liberalised Remittance Scheme — RBI's framework permitting Indian residents to remit up to USD 250,000 per financial year for overseas travel, investment, education, etc. TCS triggers above the ₹7 lakh annual threshold on LRS-route remittances.

Who deducts the TCS?

Authorized tour operators (registered with GST + RBI for overseas remittances) deduct TCS at the time of booking. Forex card issuers + AD banks deduct on currency conversion or card load.

TCS Calculator — Overseas Travel from India 2026

Calculate your TCS liability

TCS slabs (FY 2026, India)

FAQ

Is TCS refundable?

Does TCS apply to flight tickets?

What is LRS?

Who deducts the TCS?

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