Budget 2026 Makes Overseas Travel Cheaper for Indian Tourists
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Budget 2026 Makes Overseas Travel Cheaper For Indian Tourists

Budget 2026 Makes Overseas Travel Cheaper for Indian Tourists

Budget 2026 Makes Overseas Travel Cheaper for Indian TouristsBudget 2026 Makes Overseas Travel Cheaper for Indian Tourists

Summary

Budget 2026-27 brings cheer to Indians travelling abroad as the Tax Collected at Source on overseas tour packages is reduced to just 2 per cent. The move slashes upfront costs for travellers, making international holidays more affordable and boosting outbound tourism from India.

The Union Budget 2026-27 has made overseas travel significantly cheaper for Indians. Finance Minister Nirmala Sitharaman announced a major cut in the Tax Collected at Source (TCS) on foreign tour packages, now reduced to a flat 2 per cent from the earlier rate of 20 per cent. This means Indian travellers will no longer face heavy upfront tax payments when booking international trips, easing cash flow and encouraging more families to plan holidays abroad.

Travel experts and tour operators have welcomed the move, calling it a timely boost for India’s outbound tourism sector, which has been steadily growing since the post-pandemic rebound. They expect the reduced TCS to spark a rise in global travel bookings, especially across destinations like Thailand, Dubai, Singapore, and Europe, where Indian tourist footfall is already on the rise. The policy is being seen as a step toward making foreign travel more inclusive and accessible.

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