{"id":7963,"date":"2025-05-29T10:42:26","date_gmt":"2025-05-29T10:42:26","guid":{"rendered":"https:\/\/www.extravelmoney.com\/blog\/?p=7963"},"modified":"2026-04-23T07:22:30","modified_gmt":"2026-04-23T07:22:30","slug":"tcs-gst-foreign-travel-remittances","status":"publish","type":"post","link":"https:\/\/www.extravelmoney.com\/blog\/tcs-gst-foreign-travel-remittances\/","title":{"rendered":"TCS & GST for Foreign Travel Remittances from India Explained"},"content":{"rendered":"\n
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Update:<\/strong> 23 Apr 2026<\/p>\n\n\n\n

New TCS rates on sending money abroad<\/a> have been proposed in the 2026 Budget. They’ll be in effect from April 1st 2026. <\/p>\n\n\n\n

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Dreaming of that perfect getaway overseas? Sending money for your travel expenses may seem straightforward, but did you know there could be taxes involved? Falling for shortcuts to send money tax-free can lead to costly mistakes or even illegal transfers. So, knowing the tax rules can save you from surprises. <\/p>\n\n\n\n

So<\/strong> yes, sending money abroad from India for tourism involves two key taxes, which are TCS (Tax Collected at Source) and GST (Goods and Services Tax).<\/strong><\/p>\n\n\n\n

This simple guide explains the taxes on sending money abroad for international travel without any jargon and zero confusion. So that you are aware of the applicable TCS and GST and we can help your international money transfer be tax compliant.<\/p>\n\n\n\n

Also Read: Is Purchase of Foreign Currency and Forex Cards Taxable in India?<\/a><\/a><\/strong><\/p>\n\n\n\n

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Buy Currency and Forex Card Now<\/a><\/div>\n<\/div>\n\n\n\n
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TCS on Foreign Remittances for Tourism<\/h2>\n\n\n\n

What is TCS?<\/h3>\n\n\n\n

Under the Liberalised Remittance Scheme (LRS) by the Reserve Bank of India (RBI), Indian residents can send up to USD 250,000 abroad per financial year per person. However, depending on the transfer purpose and the government-set threshold, banks and remittance companies are required to collect TCS<\/a>.<\/p>\n\n\n\n

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Who Pays TCS?<\/h3>\n\n\n\n

The person sending the money (the traveller or travel sponsor) is liable to pay the applicable TCS. The TCS is collected by the bank or authorised dealer during the transaction and submitted to the Income Tax Department.<\/p>\n\n\n\n

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TCS Rates Applicable for Tourism-Related Remittances<\/h3>\n\n\n\n

Tourism-related outward remittances are subject to FLAT 5% TCS regardless of the amount. The Rs 10 Lakh TCS Free limit per year does not apply to them.<\/p>\n\n\n\n

Transfer<\/strong> Purpose<\/strong><\/td>Rate of TCS up to Rs. 10 Lakhs<\/strong><\/td>International tour packages and other tourism-related payments<\/td><\/tr>
International tour packages and other tourism related payments<\/td>Flat 2% of the total amount<\/td>Flat 2% of the total amount<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n
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TCS Calculator<\/a><\/div>\n<\/div>\n\n\n\n
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