New Delhi, Feb. 1 -- While presenting the Union Budget 2026, Finance Minister Nirmala Sitharaman on Sunday announced a reduction in the rate of tax collected at source (TCS) from 5% (or 20% ) to 2% for various purposes, including foreign education, medical expenses and overseas tour programmes.

"I propose to reduce TCS rate on the sale of overseas tour programme package from the current 5% and 20% to 2% without any stipulation of amount," said FM Sitharaman in Parliament.

When you remit money overseas for travel, treatment, or education, you need to convert Indian rupees into foreign currency. Under the Reserve Bank of India's LRS (Liberalised Remittance Scheme), resident Indians can transfer up to $250,000 in a financial year.

At the ...