Budget 2026-27 Proposes Sharp Cuts In TCS On Overseas Travel, Education And Medical Remittances

The Union Budget 2026–27 on Sunday also proposed significant reductions in tax collection at source (TCS) rates on overseas travel and certain foreign remittances.

Presenting the direct tax proposals, Finance Minister Nirmala Sitharaman announced a cut in TCS on foreign tour packages. “I propose to reduce TCS rate on the sale of overseas tour programme packages from the current 5 per cent and 20 per cent to 2 per cent, without any stipulation of amount,” she said.

The Finance Minister also proposed lowering TCS on remittances made for education and medical treatment under the Liberalised Remittance Scheme. “I propose to reduce TCS rate for pursuing education and for medical purposes under the Liberalised Remittance Scheme from 5 per cent to 2 per cent,” Sitharaman said.