New Delhi, Feb. 1 -- The proposal in the union Budget 2026-27 to reduce the Tax Collected at Source (TCS) on travel packages from the current 5 per cent and 20 per cent and bring it down to flat 2 per cent without stipulation on the package amount, has brought cheer in the travel trade in the country, especially travel agents and tour operators, who used to deal with international packages for Indian customers.
Introducing the Budget for FY27 in the Parliament on Sunday, Finance Minister Nirmala Sitharaman has announced the decision to cut the TCS on overseas travel packages to flat 2 percent.
The travel trade and industry has been demanding waiving off the TCS for long as they used to lose a lot of business to overseas agents and OTAs. "...