Foreign Tour Packages Will Cost More Starting 1st July 2023: Tips to Book Smarter and Save

Rashmi | Last updated: 16 March 2023

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From July 1st, 2023, Indian travellers will face increased costs for foreign tour packages due to a hike in Tax Collection at Source (TCS) from 5% to 20% on foreign remittances under the LRS. This change impacts tour packages, foreign currency purchases, and other travel expenses, potentially increasing costs by up to 15%. While TCS is adjustable against your income tax liability, it can affect your immediate cash flow. Booking components like flights and hotels separately, or using credit cards for self-organised trips, can help mitigate these new charges.

Starting from July 1, 2023, booking foreign tour packages is going to become more expensive for Indians. The government has increased the tax collection at source (TCS) rate for foreign remittances under the Liberalised Remittance Scheme (LRS) from 5% to 20% (except for education and medical purpose

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About the Author

Rashmi

business

I am a Chartered Accountant with over 2 decades of experience in Auditing, Taxation, Accounting, Due diligence. I am currently a Managing Partner at RRL Global Services. I can be reached at rrlglobal @ yahoo.com or @ 9811757230

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