When booking international travel packages beginning in July 2023, be prepared to spend extra. The Liberalised Remittance Scheme (LRS) has increased the tax collection at source (TCS) rate for overseas remittances from 5 per cent to 20 per cent, with education and medical reasons being an exception as of Budget 2023. As a result, TCS on remittances for booking international vacation packages would increase from the current 5 per cent to a staggering 20 per cent. From July 1, 2023, a 20 per cent TCS will be required if you buy an international tour package from a travel agent. You must pay TCS of 20 per cent even if you buy foreign currency for your international travel individually from an authorised dealer. However, if you purchase an overseas flight alone and not as a component of a trip package, there will be no TCS applied.
