Foreign Travel To Get Expensive. TCS Jump From 5% To 20%

As per the announcement made in Budget 2023, the Tax Collected at Source (TCS) rate on foreign remittances, including bookings for tour packages, will rise sharply from 5 per cent to 20 per cent of the total transaction amount from July 1, 2023. This means if the air travel costs Rs 50,000, the corresponding TCS amount would be Rs 10,000, which is equivalent to 20 per cent of the air travel cost. Not only foreign tour packages but 20 per cent TCS rule also will also apply on credit cards on international transactions, which means even direct booking would come under the ambit of 20 per cent TCS, as per finance ministry circular issued on May 16. Teena Jain Kaushal, Editor-Money Today, interviews Mohit Kabra, Group CFO at MakeMyTrip, to discuss the implications of these new rules