The reduction in the rate of tax collected at source (TCS) from 5 per cent (and 20 per cent) to 2 per cent for booking overseas tour packages would boost international travel, particularly group travel and destination weddings, tour operators said on Sunday. ADVERTISEMENTFor international tour packages, TCS is levied at 5 per cent on amounts up to ₹10 lakh and 20 per cent on amounts above that. When TCS is high, tour packages become more expensive upfront, and travellers’ money gets blocked until the tax refund. Tour operators said the rupee depreciation against the US dollar had hit international travel this season. The TCS reduction could give some relief, and international travel should again go up,” said Anjani Dhanuka, chairman, Travel Agents Association of India, eastern region.

Source: The Telegraph February 01, 2026 23:56 UTC