Money Abroad Tax IndiaTCS on an overseas tour package
Section 394(1), Table serial 8 of the Income-tax Act, 2025 (read on 13 November 2026) makes the seller of an "overseas tour programme package", including expenses for travel, hotel stay, boarding or lodging or similar related expenditure, collect 5% of the amount or aggregate of amounts up to ten lakh rupees and 20% of the amount or aggregate above ten lakh rupees. There is no tax-free first slice, unlike remittances.
Tax on a package, nothing paid earlier in the year
| Package | Tax collected |
|---|---|
| ₹3,00,000 | ₹15,000 |
| ₹8,00,000 | ₹40,000 |
| ₹10,00,000 | ₹50,000 |
| ₹12,00,000 | ₹90,000 |
| ₹20,00,000 | ₹2,50,000 |
| ₹50,00,000 | ₹8,50,000 |
No double collection
Section 394(4)(a): if the seller has collected tax on the package, the bank does not collect again under the remittance rule on that amount.
Common questions
Is there a threshold for tour packages?
No. Serial 8 of the table collects 5% on the amount or aggregate up to ₹10 lakh and 20% on the part above ₹10 lakh, from the first rupee.
Source
- The Income-tax Act, 2025, as published in the Gazette of India Extraordinary: section 394 (tax collection at source, Table serials 7 and 8 and sub-sections (4) and (5)) and section 395(3) (certificate for collection at a lower rate). The enacted text was read on 13 November 2026.
Rules read on 13 November 2026 from the Income-tax Act, 2025. The Act may have been amended since it was enacted. This site is independent, not connected with the Income Tax Department or any bank, and gives arithmetic, not tax advice or foreign exchange advice. Your bank collects the tax: ask it.