Budget 2026 Makes Overseas Travel More Affordable with Reduced TCS

The Union Budget 2026 has brought welcome relief for Indian travelers, with Finance Minister Nirmala Sitharaman announcing a cut in the Tax Collected at Source (TCS) on overseas tour packages. The TCS rate, which previously ranged between 5 percent and 20 percent, will now be a flat 2 percent, making foreign travel significantly more affordable for Indian citizens.

"This reduction applies without any minimum amount condition, meaning travelers will pay much less upfront tax when booking international trips", Sitharaman said during the budget presentation for 2026-2027.

The move also benefits families sending children abroad for education or managing medical expenses overseas. Gagan Malhotra, COO of BookMyForex, welcomed the decision, calling it a progressive step to ease the financial burden on Indian families.

In addition, the budget announced increased investment flexibility for Non-Resident Indians (NRIs) in equity instruments, allowing them to diversify and grow their portfolios more freely.

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The new budget follows prior measures that simplified income tax rules, updated NRI residency norms, and revised taxation on global income. Homeowners also benefit, as up to two properties can now be treated as self-occupied, reducing the tax burden on rental income.

Overall, these changes aim to make foreign travel, education, healthcare, and investments more accessible and financially manageable for both residents and non-residents. The measures are expected to boost international travel and overseas financial planning among Indians.