News > Foreign travel to get expensive from July 1! Tax collected at source to jump from 5% to 20%

Foreign travel to get expensive from July 1! Tax collected at source to jump from 5% to 20%

As per the announcement made in Budget 2023, the Tax Collected at Source (TCS) rate on foreign remittances, including bookings for tour packages, will rise sharply from 5 per cent to 20 per cent of the total transaction amount from July 1, 2023. 20 per cent TCS rule also applies on credit cards on international transactions, which means even direct booking would come under the ambit, as per finance ministry circular issued on May 16.