As more Indians plan overseas holidays, understanding Tax Collected at Source (TCS) on international tour packages has become crucial. While TCS is collected upfront, many travellers remain unaware of how it works, why it appears in Form 26AS, and how to claim it as a credit against their income tax liability.

How TCS works?

TCS is collected upfront by the tour operator or travel agent at the time of booking, whether payment is in INR or foreign currency. It applies to packages with at least two components, such as flight tickets plus hotel stays.

For the financial year 2025-26, TCS is structured as follows:

5% on payments up to ₹10 lakh per individual per financial year.

20% on the portion exceeding ₹10 lakh.

Vinay Bagri, CEO & Co-founder of Niyo, explains, “The lower rate of 5% ap

See Full Page