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Different ways you can avoid the 20% TCS on overseas tour packages
- 5 minute read
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- Posted on June 19, 2023 June 19, 2023
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Prepare to allocate more funds for your upcoming foreign vacation starting next month. Commencing on July 1, 2023, an increased tax collected at source (TCS) rate of 20% will apply to overseas tour packages. Currently, when booking a foreign tour package, a TCS of 5% is imposed. As a result, you will encounter a higher initial cost when travelling abroad.
Although you can seek a refund for the TCS while filing your income tax return, the refunded amount will remain inaccessible until it is processed in the subsequent financial year.
However, it is worth noting that strategies are available to help you mitigate this avoidable expense and potentially save on the additional cost. Continue reading to find out.
What is the new TCS rule that kicks in from July 1, 2023
If you have an upcoming international trip in your plans, it is crucial to familiarise yourself with this new regulation and explore how you can leverage it effectively to safeguard your hard-earned finances.
Starting from July 1, 2023, if you book a foreign trip through an Indian tour operator, they will impose a tax collected at source (TCS) of 20% on the entire tour package. For example, if you plan a trip to Europe with a total cost of Rs 3,00,000 through a local travel agent, the agent will be obligated to collect a TCS of 20% on the tour package. Consequently, you will need to pay an additional amount of Rs 60,000 as TCS when booking the tour.
While the standalone cost of the tour package remains unchanged, the total expense for you will rise due to the imposition of a 20% TCS. This additional levy will increase the overall cost of the tour.
It is important to note that the obligation of collecting and remitting the TCS rests with the travel agent or authorised dealer in the case of overseas tour packages. Therefore, if you book a foreign tour package through an offline or online travel agent in India and pay Indian rupees, the travel agent will still deduct the applicable TCS.
Similarly, if you purchase foreign currency from an authorised dealer for your international vacation, a TCS of 20% will be levied. Additionally, if you load a Forex card with funds before your trip to utilise overseas, a TCS of 20% will also be imposed on it.
Three ways to avoid 20% TCS during your next international trip
1) Use the Rs 7 lakh limit of international debit or credit card
As you can observe, a substantial TCS amount must be borne if you book your foreign trip through domestic travel agents or online platforms within India. However, choose to book a tour package offered by international websites and make payments through an international debit or credit card.
You will be exempt from TCS as long as the payments remain below the threshold of Rs 7 lakh. On May 19, 2023, the finance ministry announced that starting from July 1, 2023, no TCS will be imposed on individual payments made using international debit or credit cards up to Rs 7 lakh in a financial year. It is essential to remember that the threshold for exemption is set at Rs 7 lakh.
According to Ankit Jain, Partner at Ved Jain & Associates, the method of booking chosen for international travel can impact the applicability of TCS (Tax Collected at Source). There are two options: booking through an Indian travel agent with a domestic payment or utilising an international travel website with an international credit card. In both cases, TCS is generally applicable.
However, there is a potential exemption when using an international credit card to book through an international tour operator. In such cases, TCS will not be charged for transactions up to Rs 7 lakh, as the credit card company would levy it. Consequently, TCS can be avoided up to Rs 7 lakh when booking online through an international travel website.
2) Separate booking and payments can help you save TCS
Another critical point is that a 20% TCS is levied on overseas tour packages. However, the definition of a “tour package” under the law is unclear. In light of the proposed increase in TCS, individuals may choose to book their flights, hotels, and sightseeing components separately to avoid forming a package and attracting the TCS levy.
Ankit Jain further explains that no TCS will be applicable if you directly purchase your flight ticket from airlines such as Air India, Vistara, or IndiGo. Similarly, if you book your hotel directly through the hotel’s website and make payment with a debit or credit card, you will not be subject to TCS as long as the amount remains within the threshold of Rs 7 lakh.
By opting for segregated bookings, you can utilise the Rs 7 lakh limit separately for each individual, especially when travelling with friends or family. This allows you to divide the total cost to ensure each person stays within the Rs 7 lakh limit, thus avoiding TCS implications.
3) Buying foreign exchange by June 30, 2023, to avoid high TCS
Many individuals purchase foreign currency or utilise a forex card rather than relying solely on their debit or credit cards when travelling internationally.
Purchasing foreign currency or a Forex card by June 30, 2023, is advisable to avoid paying higher TCS. Sudarshan Motwani, Founder & CEO of BookMyForex.com, explains that the Reserve Bank of India (RBI) permits the purchase of foreign currencies or forex travel cards up to 60 days before the travel date.
If you have plans to travel anytime from now until the end of August, you can take advantage of this opportunity and buy your foreign currencies or Forex travel cards before the end of June. This way, you can save 20% on TCS.
It is essential to be aware that there could be a significant increase in the number of individuals seeking to exchange currency in June, which may lead to delays in currency delivery. As a precautionary measure, exchanging your currency well before your departure date is recommended to avoid any potential last-minute inconveniences at the airport. By planning ahead, you can save both time and money while ensuring a smooth travel experience.
When using international debit or credit cards, it is essential to note that there is an aggregated threshold exemption limit of Rs 7 lakh in a financial year. If the total payment made through all cards combined exceeds this threshold, a TCS of 20% will be applicable.
To avoid the 20% TCS, you can utilise multiple debit or credit cards for booking your flight or hotel, but ensure that the total payment across all cards remains within the limit of Rs 7 lakh. By staying within this threshold, you can prevent the imposition of the TCS.
For any clarifications/feedback on the topic, please contact the writer at [email protected]
I am an engineer passionate about literature, content, books, feline companions, and practising yoga. I love navigating diverse genres, which led me to my work here at ClearTax.
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Will you have to pay 20% extra for international travel? New TCS rule explained
By Condé Nast Traveller
The Finance Ministry has introduced amended rules under the Foreign Exchange Management Act (FEMA), increasing the Tax Collected at Source (TCS) for international spending from 5% to 20%. This increased tax will apply from 1 July, and there are also new rules regarding international credit card transactions. Here’s a handy explainer on what the new 20% TCS rule means, and how things will change for you:
What is TCS?
Tax Collected at Source is a tax payable by a seller which he collects from the buyer at the time of sale of goods so that it can be deposited with the tax authorities.
What is the new 20% TCS rule?
Previously, the TCS on international spending was 5%. Starting 1 July, this will increase to 20%. This means that any travel bookings you make, July onwards, will cost 20% more upfront. Any international travel package, airline and accommodation bookings will be 20% higher in cost than before. “Suppose you’re booking a package that costs Rs100, it will now cost Rs120—with Rs20 being collected as tax,” says Aliasgar A Khumosi, a chartered accountant. This applies for all forms of payments.
What kind of transactions will attract the 20% TCS?
Any spending through a debit card, credit card or forex card outside of India will attract the 20% TCS. This includes meals at restaurants, Ubers, flight bookings, hotel bookings, shopping and more. However, the Ministry of Finance has issued a clarification stating that “any payments by an individual using their international Debit or Credit cards up to Rs7 lakh per financial year will be excluded from the LRS (Liberalized Remittance Scheme) limits and hence, will not attract any TCS”.
Can you book through a travel agent to save TCS?
The rule also applies to bookings made through a travel agency—you will pay 20% more to your travel agency for their services as a result of the new rule. Beyond foreign travel, the rule applies to money sent abroad as well as any other remittances.
Will a forex card save you the TCS?
No. Transactions on forex cards and debit cards will also attract the 20% TCS.
How does it affect international credit card transactions?
In consultation with the RBI, the Finance Ministry has omitted Rule 7 of the Foreign Exchange Management (Current Account Transactions) Rules, 2000. Under this rule, forex spending through international credit cards was exempted from the Liberalized Remittance Scheme (LRS). This scheme enables Indian residents to remit funds abroad for certain specified purposes up to a limit of $2,50,000 (Rs2 crore). Until now, the scheme only included debit cards, forex cards and bank transfers. Since international credit card transactions were not included, they were also exempt from the TCS levies that came under the scheme. With the new rule, transactions made with credit cards outside of India will also fall under the LRS. Until 1 July, the transactions will carry a 5% TCS levy, following which the TCS for transactions above Rs7 lakh (per financial year) will increase to 20%.
Are there any foreign expenses that are exempted from the 20% TCS?
Yes. There is no change in the TCS rate for remittances made for the purpose of any education or medical treatment abroad.
Can you claim the 20% TCS back?
“You can get your tax back once you file your returns. It’s essentially an advance tax paid by you,” says A Khumosi. While you will have to pay more for international travel upfront, you can claim the tax back through your Form 26AS—your annual tax statements—when you file your returns.
Important changes w.r.t Liberalised Remittance Scheme (LRS) and Tax Collected at Source (TCS) No change in rate of TCS for all purposes under LRS and for overseas travel tour packages, regardless of mode of payment, for amounts up to Rs. 7 lakh per individual per annum Government gives more time for implementation of revised TCS rates and for inclusion of credit card payments in LRS Increased TCS rates to apply from 1st October, 2023
In the Budget this year, certain changes were announced to the system of Tax Collection at Source (TCS) on payments under the Liberalised Remittance Scheme (LRS) and on overseas tour program packages. These were to take effect from 1 st July 2023. It was also announced in March that credit card payments would be brought under the LRS. Numerous comments and suggestions were received which have been carefully considered.
In response to the comments and suggestions it has been decided to make suitable changes. Firstly, it has been decided that there will be no change in the rate of TCS for all purposes under LRS and for overseas travel tour packages, regardless of mode of payment, for amounts up to Rs. 7 lakh per individual per annum . It has also been decided to give more time for the implementation of the revised TCS rates and for inclusion of credit card payments in LRS. The changes are detailed below.
Sub-section (1G) of section 206C of the Income-tax Act, 1961 (“the Act”) provides for Tax Collection at Source (TCS) on (i) foreign remittance through the Liberalised Remittance Scheme (LRS) and (ii) sale of overseas tour program package.
Through the Finance Act 2023, amendments were carried out in sub-section (1G) of section 206C of the Act. These amendments, inter alia , increased the rate of TCS from 5% to 20% for remittance under LRS as well as for purchase of overseas tour program package and removed the threshold of Rs 7 lakh for triggering TCS on LRS. These two changes were not applicable when the remittance is for education or medical purpose. These amendments were to take effect from 1 st July 2023.
The Government had notified Foreign Exchange Management (Current Account Transactions) (Amendment) Rules, 2023 vide an e-gazette notification dated 16th May 2023 to remove the differential treatment for credit cards vis à vis other modes of drawal of foreign exchange under LRS.
After discussions with various stakeholders, and taking into account comments and suggestions received, the following decisions have been taken:
i) To give adequate time to Banks and Card networks to put in place requisite IT based solutions, the Government has decided to postpone the implementation of its 16th May 2023 e-gazette notification. This would mean that transactions through International Credit Cards while being overseas would not be counted as LRS and hence would not be subject to TCS. The Press Release dated 19 th May 2023 stands superseded.
ii) Threshold of Rs. 7 Lakh per financial year per individual in clause (i) of sub-section (1G) of section 206C shall be restored for TCS on all categories of LRS payments , through all modes of payment, regardless of the purpose : Thus, for first Rs 7 Lakh remittance under LRS there shall be no TCS. Beyond this Rs 7 Lakh threshold, TCS shall be
a) 0.5% (if remittance for education is financed by education loan);
b) 5% (in case of remittance for education/medical treatment);
c) 20% for others.
For purchase of overseas tour program package under Clause (ii) of Sub-section (1G), the TCS shall continue to apply at the rate of 5% for the first Rs 7 lakhs per individual per annum; the 20% rate will only apply for expenditure above this limit.
iii) Increased TCS rates to apply from 1 st October, 2023: The increase in TCS rates; which were to come into effect from 1 st July, 2023 shall now come into effect from 1 st October, 2023 with the modification as in (ii) above. Till 30 th September, 2023, earlier rates (prior to amendment by the Finance Act 2023) shall continue to apply.
Earlier and new TCS rates are summarised as under:
Note: (i) TCS rate in column two shall continue to apply till 30 th September, 2023.
(ii) There shall be no TCS on expenditures under LRS under clause (i) of Sub-section (1G) for the first Rs. 7 lakh, irrespective of purpose.
The necessary changes to the Rules (Foreign Exchange Management (Current Account Transactions Rules), 2000) are being issued separately.
Legislative amendment in this regard shall be proposed in due course. Circular and Frequently Asked Questions (FAQs) shall be issued to clarify various practical issues in implementing this provision.
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New TCS rule from next month: Three tips to reduce Tax Collected at Source on your foreign trip
New TCS rule from 1 October 2023: TCS on foreign remittances under LRS raised to 20% from 5% in Union Budget 2023. Effective from October 1, 2023
New TCS rule from next month: In the Union Budget 2023, the tax collection at source (TCS) for foreign remittances under the Liberalised Remittance Scheme (LRS) was raised from 5% to 20%. This will be applicable to international travel, sending money abroad, and other remittances. The higher rate of TCS will not apply to education expenses incurred abroad or for medical reasons. This new rule will come into effect from next month, October 1, 2023.
Planning to travel abroad? Be ready to pay more starting 1 October 2023
International travel plans will get costlier and TCS on overseas tour packages will now attract a higher TCS rate of 20% instead of the previous rate of 5% if the total spend is above ₹ 7 lakh. However, the 5% rate will continue to prevail if the total cost of the package is under ₹ 7 lakh.
“It has been clarified by the government that the purchase of international travel tickets and hotel bookings on a standalone basis will not qualify as an Overseas Tour Program Package," said Archit Gupta, Founder and CEO, of Clear
The government has also clarified that payments made overseas using one’s credit card will remain outside the purview of TCS for the time being. Other payment modes, like debit cards, cash, and wire transfers will continue to attract TCS at the applicable rates, Gupta added.
Also Read: Five personal finance rule changes taking place from next month
How to minimise tcs burden.
One can plan their outward remittances to minimize the TCS burden. With an example, Gupta explained that if a person has multiple outward remittances planned for the year for foreign travel, investment, education, and or medical purposes, then the first spend can be towards transactions attracting a higher rate of TCS viz, travel and investment and thereafter, remittance can be made towards education and medical purposes which attract a lower rate of TCS.
How you can reduce TCS on your foreign trip?
“This change means that limiting your total expenses to ₹ 7 lakhs would be a wise move to optimize your trip expenses," Abhishek Soni CEO and Co-founder Tax2win.
Here are some tips to help you save on your foreign travels as suggested by Tax2win CEO
Avoid Packaging of the Trip: Instead of opting for a bundled tour package, travelers can consider making standalone bookings for their overseas accommodation, travel tickets, and other relevant expenses before September 30, advised Soni.
Buy Forex in Advance: It's advisable to refrain from last-minute currency exchange and, instead, purchase Forex in advance. “Until September 30, forex orders over ₹ 7 lakh will be subject to only 5 percent tax," said Soni.
Use Credit Cards with Caution: The government has also clarified that payments made overseas using one’s credit card will remain outside the purview of TCS for the time being. As per Tax2win CEO, this amendment might impact your next planned trip. Stay updated and plan accordingly.
Disclaimer: The views and recommendations made above are those of individual analysts, and not of Mint. We advise investors to check with certified experts before taking any investment decisions.
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Explained: How you can minimise the impact of 20% TCS on foreign trips
Avoid booking travel packages and use a debit or credit card during your personal international trip.
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First Published: Jun 02 2023 | 6:27 PM IST
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Understanding the Impact of New 20% TCS on Overseas Travel and LRS
- Vidya Khanna
- | Income Tax - Articles
- Download PDF
- 11 Jul 2023
- 10,041 Views
CA Vidya Khanna
Clarification, Exemptions and all one needs to know about the new TCS provision relating to overseas trip & LRS
The Indian travel and tourism sector has been a significant contributor to the nation’s economy, with its worth projected to rise to Rs 16.5 trillion by the end of this year. However, a new tax provision introduced by the government is set to impact overseas travel. From October 1, 2023, a Tax Collected at Source (TCS) rate of 20% will be implemented on overseas tour packages. This article aims to clarify the implications, exemptions, and all you need to know about this new TCS provision as it relates to overseas trips and the Liberalised Remittance Scheme (LRS).
As per the Budget 2023, the purchase of overseas tour packages from a travel agent worth more than 7 lakhs in a financial year will be subject to an increase in TCS (Tax Collected at Source) rate of 20%, a three-fold jump from current 5%, starting October 1 st 2023. One has to pay 20% TCS even if they buy foreign currency for their international travel individually from an authorized dealer. Indians’ international travel will be impacted by this idea, particularly for those who book tour packages. The budgetary allotment for international travel will immediately increase by a sharp 15%.
The good thing is that the Forex transactions below Rs 7 lakh in a financial year will not be subject to TCS. Also, these provisions do not apply where the remittances is for educational and medical purpose.
Legal provisions under the Income tax Act
Section 206C (1G) of the Income-tax Act, 1961 (“the Act”) provides for collection of tax by a seller of an overseas tour programme package from a buyer, being a person purchasing such package, at the rate of 5% 20% of the amount of the package.
In order to remove such difficulties, the Central Government, in exercise of powers conferred under section 206C(1G) of the Act, has specified that the provisions of the said section shall not apply to a buyer being an individual who is not a resident in India in terms of clause (1) and clause (1A) of section 6 of the Act and who is visiting India. Hence, a domestic tour operator is not required to collect tax on sale of overseas tour package to non-resident individuals visiting India.
By amending Section 206C of the Income Tax Act, the Finance Bill has imposed a higher TCS on foreign travel. These amendments shall come into effect from October 1 st , 2023. Considering the comfortable forex position, the 20% TCS on Forex Purchase is a big surprise.
Although the standalone price of international travel packages might not change, the whole cost to the customer, including TCS, would eventually rise. This TCS is only applicable to bank remittances, thus any overseas travel-related expenses paid for through bank remittances would be affected. Payouts for group tours, for example, are among them.
The plan aims to make it possible to track high net worth individuals who send large sums of money abroad and ensure that they pay back any debts they might have incurred.
In other words,
- First Rs 7 lakh remittance under LRS during the financial year 2023-24 for education purpose (or for any other purpose) No TCS
- Remittances beyond Rs 7 lakh under LRS during the financial year 2023- 24, if on or before 30 th September 2023 TCS at 5% (irrespective of the purpose unless it is for education purpose financed by loan from a financial institution when the rate is 0.5%)
- Remittances beyond Rs 7 lakh under LRS during the financial year 2023-24, if on or after 1 st October 2023) TCS at O.5% (if it is for education purpose financed by loan from a financial institution), 5% (if it is for education or medical treatment) and 20% (if it is for other purposes)
Let us consider one simple example to understand –
Mr. X plans a family trip for Rs 50 lakhs and want to book holiday package to USA. He must provide the travel agent with an additional Rs. 10 lakhs i.e., 20 per cent of the Rs 50 lakhs. The entire cost of the travel package would now be Rs. 60 lakhs, plus any applicable taxes and other fees. He will have to pay Rs. 60 lakhs (Rs 50 lakhs plus Rs 10 lakhs) along with GST and any other fees, if any, at the time of booking to the travel agent.
Now-a-days, travel companies are scrambling to extend the implementation of this new rule claiming absence of proper mechanism in place. To cater industry concerns, CBDT has come up with the circular no. 10 of 2023 dated 30 th June 2023 to provide some clarifications.
The government had also clarified that the international credit and debit card spends on foreign travel up to Rs. 7 lakhs will be excluded from Liberalised Remittance Scheme (LRS) limits and hence won’t attract TCS.
Summary view: –
Conclusion : The rise in TCS to 20% for amounts exceeding Rs 7 lakhs will inevitably stir dissatisfaction among the middle class. However, it’s crucial to understand that TCS is adjustable in your tax returns and can be claimed while filing Income tax returns.
While this could present a cash flow problem for those not filing a tax return, the government has made some clarifications to address industry concerns. For instance, international credit and debit card spends on foreign travel up to Rs. 7 lakhs will be excluded from Liberalised Remittance Scheme (LRS) limits and hence won’t attract TCS. This new provision may seem daunting at first glance, but with proper understanding and planning, it can be navigated effectively.
For any query/suggestion/advice, please reach out to [email protected]
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Now in which nature of payment select for overseas tour package TCS challan in IT portal no option for That
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New 20% TCS Rule on Foreign Travel: Everything You Need to Know
The world of international travel is about to face a significant change. Starting from 1st October 2023, a new rule will be implemented that will impact every transaction made abroad. The rule, known as the 20% Tax Collected at Source (TCS), will require individuals to pay an additional 20% tax on their foreign transactions. In this article, we will delve into the details of this new rule, its implications for travelers, and how taxpayers can claim a refund.
What is Tax Collected at Source (TCS)?
Tax Collected at Source (TCS) is a mechanism implemented by the government to collect taxes directly from the seller at the source of certain transactions. It is a way to ensure that taxes are collected at the time of sale or provision of services, rather than relying on the buyer to pay the taxes separately. TCS is applicable to various transactions, including foreign travel expenses.
The Impact of the 20% TCS Rule on Travel
With the new 20% TCS rule coming into effect from October 1, 2023, there will be a significant increase in expenses for individuals planning international trips. This rule will result in a 15% escalation in expenses, as the TCS rate will rise from the existing 5% to 20%. It is crucial for travelers to be aware of this change and plan their trips accordingly to avoid any financial surprises.
To minimize the impact of the 20% TCS rule, travelers are advised to consider the following:
- Cost Limit: Make sure that the cost of your travel package does not exceed the 7 lakh threshold per individual. Packages valued at or under 7 lakh per financial year per individual will still be subject to the existing 5% TCS rate. This primarily includes the costs associated with an annual overseas leisure tour.
- Trip Planning: Engage in meticulous and strategic trip planning to maximize budget efficiency. By planning your expenses in advance and making informed choices, you can manage your travel costs effectively and minimize the impact of the 20% TCS rule.
Understanding the 20% TCS Rule
The 20% TCS rule entails that any payments made in a foreign country exceeding ₹7 lakh a year through international credit and debit cards will be subject to a TCS levy at a rate of 20% starting from October 1, 2023. This rule applies to all transactions made abroad, regardless of the payment method used. It is crucial to keep track of your foreign expenses and ensure compliance with the new rule to avoid any penalties or legal complications.
Claiming a Refund for 20% TCS
Taxpayers can claim a TCS refund in their Income Tax Return. However, it is important to note that individuals will initially see a higher bill on their cards, potentially blocking their money for several months until a return is filed and the refund is claimed. Taxpayers should keep track of the TCS entries in their Form 26AS to ensure accurate reporting and adjustment of the tax already collected.
Additional Information
- The 20% TCS rule was introduced in the Union Budget 2023-24, which aimed to increase the TCS rates from the existing 5% to 20% on overseas tour packages and funds remitted under LRS (other than for education and medical purposes).
The implementation of the 20% TCS rule on foreign travel from October 1, 2023, will significantly impact individuals planning international trips. It is crucial for travelers to understand the implications of this rule and plan their expenses accordingly. By keeping the cost of their travel package below the 7 lakh threshold and engaging in strategic trip planning, individuals can mitigate the financial burden imposed by the 20% TCS rule. Additionally, taxpayers should ensure accurate reporting of TCS entries and claim refunds in their Income Tax Return. Stay informed and compliant to make your international travel experience hassle-free.
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Frequently asked questions, how do i avoid 20% tcs on foreign remittance.
Send money for educational or medical purposes. The 20% TCS will not apply if the funds are being remitted for expenses related to education or medical treatments.
What is the new TCS rule for foreign travel?
The updated Tax Collected at Source (TCS) regulations for remittances and foreign travel will come into effect on October 1. According to the new rules, a 5% TCS will be imposed on foreign travel expenses up to Rs 7 lakh, and a 20% TCS will apply to amounts exceeding this limit.
How do I avoid TCS on foreign tour packages?
To avoid TCS, ensure your travel expenses stay below the Rs 7 lakh annual limit. If you exceed it, remember you can claim this amount back against your tax liability. Keep your TCS certificates, bills, and bank statements organized for tax filing purposes.
Can we claim TCS refund for foreign travel?
Tax Collected at Source (TCS) is applicable to specific foreign transactions originating from India. If you have paid an excessive amount of TCS, you can request a refund when submitting your income tax return. This information covers TCS rates, the refund procedure, and the required documentation, enabling you to recover any surplus amount paid.
How do I claim my TCS refund on foreign travel?
Visit the ITR website and find the TDS (Tax Deducted at Source) section. Request a refund for the TCS (Tax Collected at Source) paid on remittances. Attach a bank statement or Forex card statement displaying the TCS deduction.
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Home » Blog » [FAQs] on Understanding TCS on LRS & Overseas Tour Packages – Amendments & Clarifications
[FAQs] on Understanding TCS on LRS & Overseas Tour Packages – Amendments & Clarifications
- Blog | Income Tax |
- Last Updated on 10 August, 2023
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Table of Contents
- Introduction
- Frequently Asked Questions
1. Introduction
Taxation is one of the primary sources of revenue for the government, ensuring efficient functioning of country’s economy. As a measure to prevent any revenue leakage and avoid tax evasion by the taxpayer, the government has framed a mechanism to ensure revenue generation through taxes at an earlier stage, i.e., at the source itself for certain specified transactions. Such mechanism under section 206C of the Income Tax Act, 1961 is called “Tax Collection at Source” (TCS). It is the tax payable by a seller which he/she collects from the buyer at the time of sale. TCS is applicable to transactions of sale of goods like scrap, minerals, timber, bullion, etc., exceeding specified values. Also, it is applicable to remittances under the Liberalised Remittance Scheme (LRS) and any receipt of payments for overseas tour packages.
The concept of Liberalised Remittance Scheme (LRS) was introduced by the Reserve Bank of India (RBI) in 2004, under which resident individuals in India were allowed to make remittances from India to foreign countries up to a certain specified limit, without prior approval of RBI, thus, liberalizing the outflow of remittances. Section 206C (1G) of the Income-tax Act, 1961 specifically governs the provisions for TCS on LRS and the receipt of payments for overseas tour packages.
The Government vide Finance Act, 2020, amended section 206C of the Act, and introduced sub-section (1G) to section 206C, covering remittances made under LRS and Overseas Tour Package Program under the ambit of TCS and mentioning that under LRS, if an amount greater than Rs. 7 Lakh is remitted, then TCS @ 5% shall be applicable.
The Government further announced changes in the TCS provisions on payments under the Liberalised Remittance Scheme (LRS) and overseas tour program packages vide Finance Act, 2023, which were to take effect from 1 st July, 2023. The implementation of the same have been postponed by the government via a Press Release ( https://pib.gov.in/PressReleasePage.aspx?PRID=1936105 ) posted on 28 th June, 2023 . The proposed amendments in the rates of TCS shall now come into effect from 1 st October, 2023 , i.e., earlier TCS rates (prior to amendment in the Finance Act, 2023) shall continue to apply till 30 th September, 2023. The decisions taken by the government based on the comments and suggestions from various stakeholders include:
- No change in the rate of TCS for all purposes under LRS/overseas travel tour packages, irrespective of mode of payment, for amounts up to Rs. 7 Lakhs per annum per individual ,
- Extension of time limit for implementation of revised TCS rates up to 1 st October, 2023 , and
- Transactions through International Credit Cards while being overseas would not be considered under LRS and thus, would not attract TCS provisions. The Press Release dated 19 th May, 2023 stands superseded.
With reference to this Press Release, CBDT has issued certain guidelines as clarification of provisions relating to Tax Collection at Source (TCS) on Liberalised Remittance Scheme (LRS) and on purchase of overseas tour program package vide Circular No. 10 of 2023 dated 30 th June, 2023 ( https://incometaxindia.gov.in/communications/circular/circular-10-2023.pdf ). Some of the clarifications made via this circular have been discussed here with the help of an example.
2. Frequently Asked Questions
Imagine Mr Gupta making following remittances/purchases and the consequences of the same in context of the provisions as clarified in the circular:
FAQ 1. A foreign remittance of Rs. 6 Lakh by using his international credit card towards medical treatment of his mother in UK on 1st July, 2023. Whether such payment through overseas credit card be counted as LRS?
No, the payment of Rs. 6 Lakh by Mr Gupta would not be considered as remittance under LRS, as the classification of use of international credit card while being overseas as LRS is postponed.
FAQ 2. On 31st August, 2023, Mr Gupta makes further foreign remittance of Rs. 5 Lakh through his banker, towards education fees of his son, studying in Canada along with incurring an expenditure of Rs. 3 Lakh towards his hostel fees. On 5 th October, 2023, he makes foreign remittance of Rs. 2 Lakh through his banker, towards medical expenses of his son in Canada. Owing to the various purposes like education, health treatment, etc. for which he has incurred expenses, whether the threshold of Rs. 7 Lakh for TCS to become applicable on LRS, apply independently or in aggregate?
Mr Gupta shall get the aggregate benefit of threshold exemption limit up to Rs. 7 Lakh for his LRS remittances in respect of Rs. 5 Lakh towards education fees, Rs. 3 Lakh towards hostel fees and Rs. 2 Lakh towards medical expenses of his son. Remittance of Rs. 6 Lakh towards medical treatment of his mother shall not be considered as remittance under LRS as explained above. Hence, the same shall not be considered in calculating the total LRS remittance.
The liability for TCS collection by the bank @ 5% shall arise on the amount of Rs. 1 Lakh in excess of Rs. 7 Lakh up to 30 th September.
TCS @ 5% shall be applicable on remittance of Rs. 2 Lakh made towards medical expenses of his son as the same have been incurred after 1 st October 2023.
Note : If remittance is made at different time intervals:
- 1 st 7 Lakh under LRS for any purpose – No TCS
- Beyond 7 Lakh up to 30 th September, 2023 for any purpose – TCS @ 5% ( except for education purpose financed by loan – TCS @ 0.5% )
- Beyond 7 Lakh from 1 st October, 2023 :
- For education purpose financed by loan – TCS @ 0.5%
- For Education/Medical treatment – TCS @ 5%
- For other purposes – TCS @ 20% .
FAQ 3. Can Guptatake the benefit of the threshold of Rs. 7 Lakh for TCS to become applicable on LRS for the whole financial year or whether the same shall be available for each of the six months separately; there being different TCS rates on LRS for the first and second half of the year?
Gupta can take the benefit of Rs. 7 Lakh spent before 1st October, 2023 even for the second half of the year, as the threshold of Rs. 7 Lakh for TCS under LRS applies for the whole financial year. Thus, TCS provisions shall be applicable on Rs. 2 Lakh @ 5% on medical expenses incurred for his son.
FAQ 4. Each time Guptahas remitted amounts outside India through different authorized dealers, whether the threshold of Rs. 7 Lakh for TCS to become applicable on LRS, apply separately for each remittance through different authorized dealers? If not, how will the authorized dealer know about the earlier remittances made by him through some other authorized dealer?
The threshold limit is qua remitter and not qua authorized dealer. Since, the amount remitted by Mr Gupta (the remitter) in aggregate is more than Rs. 7 Lakh in the whole financial year, thus, TCS shall apply on the amount over and above the threshold limit, irrespective of the amount of remittance made by the authorized dealer.
Details of previous remittances during the financial year may be taken by the authorized dealer via an undertaking at the time of remittance.
Similar provisions are applicable in case of overseas tour program package.
FAQ 5. On 10th October, 2023, Gupta books an overseas tour package inclusive of travel ticket and hotel accommodation expenses of Rs. 4 Lakh to Germany from a tour operator. As per the provision of law, there is threshold of Rs. 7 Lakh for remittance under LRS for TCS to become applicable while there is another threshold of Rs. 7 Lakh for purchase of overseas tour program package where reduced rate of 5% TCS applies. Whether these two thresholds apply independently?
The tour operator shall be liable for TCS collection on Rs. 4 Lakh @ 5% under TCS provisions applicable to purchase of overseas tour program package and the TCS provisions shall be applicable on LRS remittances independently as discussed above.
Note : The two thresholds apply independently.
- For LRS – limit of 7 Lakh determines TCS applicability.
- For purchase of overseas tour program package –limit of 7 Lakh determines applicability of TCS rates as 5% or 20%.
FAQ 6. Gupta having spent Rs. 4 Lakh for purchase of overseas tour program package from a foreign tour operator has remitted money which is classified under LRS. Whether TCS is applicable? If yes, which amongst the two provisions – TCS provisions for purchase of overseas tour program package or TCS provisions for remittance under LRS shall be applicable in such case?
Yes, TCS @ 5% shall be applicable on amount of Rs. 4 Lakh spent by him, the same being less than Rs. 7 Lakh, attracting the provisions of TCS for purchase of overseas tour program package and not TCS provisions for remittance under LRS.
FAQ 7. Gupta has made remittances under LRS for various purposes viz, medical/education/other purpose expenses. Under the provisions of TCS for remittance under LRS there are different rates for all the aforesaid expenses. What is the scope of remittance under LRS for the same?
The scope of remittance for various expenses under LRS is as follows-
Medical Treatment:
TCS provision is applicable when remittance is for the following purposes-
- purchase of tickets of the person to be treated medically overseas (and his attendant) for commuting between India and the overseas destination;
- his/her medical expense; and
- other day to day expenses required for such purpose.
- purchase of tickets of the person undertaking study overseas for commuting between India and the overseas destination;
- the tuition and other fees to be paid to educational institute; and other day to day expenses required for undertaking such study.
Thus, all the remittances made by Mr Gupta as discussed above, are covered under the scope of remittance under LRS.
FAQ 8. Gupta has booked an overseas tour program package for Germany which is inclusive of travel ticket and hotel accommodation expenses. Had he purchased an international travel ticket or hotel accommodation on standalone basis, whether the same would have been considered as purchase of overseas tour program package?
No, if Mr Gupta would have purchased an international travel ticket or hotel accommodation on standalone basis, the same would not have been considered as purchase of overseas tour program package. Since, he has booked an overseas tour program package inclusive of travel ticket and hotel accommodation expenses of Rs. 4 Lakh to Germany from a tour operator, thus, the same shall attract TCS provisions applicable to purchase of overseas tour program package @ 5%.
Note : To qualify as ‘overseas tour program package’, the package should include at least two of the following:
- international travel ticket,
- hotel accommodation (with or without food)/boarding/lodging,
- any other expenditure of similar nature in relation thereto.
3. Conclusion
One must clearly understand the true picture post the amendments pertaining to Tax Collection at Source (TCS) introduced by the Government vide Finance Act, 2023 and also the changes notified via Press Release dated 28 th June, 2023 along with the Circular released on 30 th June, 2023 issuing clarifications. It is also to be noted that the implementation of amendments has been postponed to 1 st October, 2023. In order to optimize the foreign exchange dealings and have a smooth remittance experience, the residents must acquaint themselves of the complexities of all the changes made in the provisions covering TCS on LRS and purchase of overseas tour program package.
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All About The New Travel TCS 2024
If you are planning an international trip with any travel company, you must be aware of the new Tax Collected at Source (TSC) rule. For every online and offline booking of an international tour package that costs more than Rs 7 lakhs in a financial year, the traveler has to pay TCS at 20%. For packages costing less than or equal to Rs 7 lakh, TCS will be levied at 5%.
What is TCS?
The tax known as TCS (Tax Collected at Source) is imposed by the Indian government on particular transactions and is typically collected at the point of sale. When traveling abroad, take into account the following advice to minimize or completely eliminate TCS:
Ultimate guide to bring your travel TCS to Zero in 2024
- Recognize TCS Rules: Become acquainted with the most recent TCS guidelines and policies in India. It is important to stay informed about the most recent regulations because they may change in the future.
- Plan Expenses: Before and during your trip, make sure to thoroughly plan your expenses. Try to cut down on or do away with high-value transactions that require TCS.
- Prepaid Forex Card: When making foreign exchange transactions, think about utilizing a prepaid forex card rather than credit or debit cards. TCS is typically not levied on forex card transactions.
- Reservations for Travel and Lodging: To make reservations for travel and lodging, use websites and travel agencies with headquarters in India . The use of overseas services in transactions could result in TCS charges.
- Currency Exchange: To avoid paying transfer fees when exchanging foreign currencies, exchange currency through banks or authorized dealers in India.
- Presents and Money Transfer: Exercise caution when sending or accepting gifts from overseas . If these transactions surpass predetermined thresholds, TCS may be incurred.
- Internet shopping: Take into consideration the TCS implications for any online purchases you make while traveling. Some online purchases from foreign websites could be subject to TCS.
- Cash Withdrawals: Restrict your use of foreign ATMs for cash withdrawals. You might pay extra fees or experience bad exchange rates when taking out cash, even though TCS is not directly relevant.
- Remain Informed: Remain abreast of any modifications to TCS policies and guidelines. You can make educated decisions by being aware of these regulations, which can change from time to time.
- Seek Professional Advice: If you have complex financial transactions during your overseas travel, consult a tax advisor or financial expert who can provide specific guidance based on your circumstances.
- Remember that while it’s essential to plan your expenses to minimize TCS, it’s also crucial to comply with the tax laws of your home country, as attempting to evade taxes can lead to legal and financial consequences. Always consult a tax professional for advice tailored to your specific situation, as tax laws can be complex and subject to change.
Finally, keep in mind that TCS is not an extra income tax. While submitting your income tax return (ITR), you have the option to modify the amount deducted as TCS against your tax obligation. You can receive the TCS back as a refund if you owe no taxes. Paying TCS, however, can lead to a cash flow problem because the money is blocked until you receive your refund.
Akshaya Manoharan
102 posts published..
Akshaya is our very own proactive content writer. She is creatively driven with the will to seize and explore every opportunity provided. She has traveled to almost all major tourist hotspots in India and has also visited Dubai, Bali, Singapore, and Malaysia. On her non working days, she loves to write short stories and poetry. She says, " I am not lost, but rather exploring the world through words, one journey at a time......"
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Understanding TCS on Overseas Tour Packages
By amending Section 206C of the Income Tax Act, the Finance Bill has imposed a higher TCS (Tax Collected at Source) on foreign travel. The amendments have come into effect from October 1, 2023. For an upcoming international trip, it is crucial for the travellers and tour operators to acquaint themselves with this new regulation and understand the complexities of all the changes made in the provisions covering TCS on LRS and the purchase of overseas tour program packages. Let’s examine some aspects and understand the implications related to the New TCS on foreign travel in detail.
– Arjun Akruwala
The travel and tourism industry in India is undoubtedly passing through a horrendous phase since the last few years. A simple business of helping travellers book air tickets, hotels, tour packages, visas and ancillary services has been turned into a complex web of riddles since the introduction of GST and subsequently TCS. The industry barely survived the aftermath of COVID-19 and the government announced the levy of TCS. In 2021-22, a total of USD 19.61 billion was remitted under LRS, up from USD 12.68 billion in 2020-21. In 2022-23, it rose to more than USD 24 billion and this has caught the eye of the government.
If you are planning to go on an international trip and any booking is done, offline or online, for overseas tour packages of more than Rs 7 lakh in a financial year, you have to pay TCS at 20 per cent from October 1, 2023. If the foreign tour packages cost up to Rs 7 lakh, TCS will be levied at 5 per cent.
Provisions relating to Tax Collection at Source (TCS) on Foreign Tours as introduced by Finance Act, 2020.
The modification of Section 206C of the Income-tax Act, 1961, was aimed at collecting higher TCS on overseas package tours, as it is assumed that people make high-value remittances, but their tax returns do not reflect proportionate income tax payments. TCS is an additional tax collected by sellers from buyers at the time of sale, which is then remitted to the government account. These provisions would substantially affect international travel from India.
TCS is applicable only on Overseas Tour Package
‘Overseas tour program package’ is defined as any tour package that offers a visit to a country or countries or territory or territories outside India and includes expenses for travel or hotel stay or boarding or lodging or any other expenditure of a similar nature or in relation thereto. To qualify as an ‘Overseas Tour Program Package’, the package should include at least two of the following: –
- International travel ticket,
- Hotel accommodation (with or without food)/boarding/lodging,
- Any other expenditure of similar nature or in relation thereto.
FAQs for conceptual clarity of the provisions are mentioned here under
Whether the provisions also apply to travel agents or booking of the hotel or stay individually and not providing any tour package.
The intention of the legislature is clear that TCS applies only in case of the sale of a “package tour” which includes travel ticket expenses, hotel stay or sightseeing, entry tickets or boarding or lodging, etc. An individual sale of travel tickets, hotel booking, stay, and food is not covered under this definition.
Whether the provisions also apply to the entire cost of the package even if part of the package covers a domestic tour and the rest of the part is covered under an overseas tour?
Suppose a Mumbai buyer purchases a tour package which includes first visiting North India and after visiting North India proceeding to visit any overseas destinations.
In this case, two options are available with the seller. The first option is to split the invoice of the tour package into the domestic tour and overseas tour separately whereas the second option is TCS would be levied on the entire package of the tour under a single invoice.
TCS is liable to be paid by the buyer of the overseas tour package to the seller, whereas this provision does not apply when the buyer deducts the TDS.
E.g., ABC Ltd (corporate client) approached XYZ Tourism Ltd. (Seller) to organise an off-site tour for employees, which includes training as well as sightseeing out of India. Let’s assume that ABC Ltd. is liable to deduct TDS on this transaction, then in that case XYZ Tourism Ltd shall not be liable to collect TCS on selling this package tour.
Whether payment through an overseas credit card would be counted in LRS?
As announced in the press release dated 28th June 2023, the classification of the use of international credit cards while being overseas, as LRS is postponed. Therefore, No TCS shall be applicable on expenditure through International Credit Cards while being overseas till further order.
Whether the threshold of Rs 7 lakh, for TCS to become applicable on LRS, applies separately for each remittance through different authorised dealers? If not, how will the authorised dealer know about the earlier remittances by that remitter through some other authorised dealer?
It is clarified that the threshold of Rs 7 lakh for LRS is qua-remitter and not qua-authorised dealer. This is clear from the first proviso to sub-section (1G) of section 206C of the Act. Since the facility to provide real-time updates of remittances under LRS by remitter is still under development, it is clarified that the details of earlier remittances under LRS by the remitter during the financial year may be taken by the authorised dealer through an undertaking at the time of remittance.
What is the time to collect TCS?
TCS is to be collected on earlier of the following two events:
- Amount debited by the seller i.e., on the Date of Invoice
- At the time of receipt of the amount
Documents required to be maintained for compliance of the TCS provisions
- Separate Invoicing/Cost Center to be developed for Domestic and International Tours.
- Separate records need to be maintained for Domestic and International Tours.
- Details of the PAN/Aadhar card need to be collected for International Tour buyers.
- When a buyer makes advance payment for an international tour then in that case receipt voucher should also reflect TCS on such advance.
- The invoice for the International Tour should also contain details of TCS collected from the buyer along with PAN/Aadhar Number.
- Auto reconciliation of the TCS amount should be implemented for buyers who make payments in different tranches.
- The Accounting system as well as the billing system has to be modified to incorporate TCS provisions.
Lastly, TCS can be taken as a challenge or as an opportunity as the tour operators who are not compliant will be facing a very difficult time going forward and thus this will create opportunities for the compliant and law-fearing tour operators to gain more market share. Further, the mammoth task of convincing the government regarding these draconian provisions should also not halt.
About the Author: Arjun Akruwala, a CA and LLB professional, specialises in Indirect Taxes. For the past six years, he has played a pivotal role at TAFI, serving as the official GST and TCS consultant. He is an experienced and respected travel trade industry taxation subject expert and has delivered more than 50 lectures at regional TAFI and other professional forum meetings.
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Understanding 20% TCS on Foreign Remittance | October 2023 Update
The Union Budget proposed by Finance Minister Nirmala Sitharaman in February 2023 announced some significant modifications to personal finance. One of them is the introduction to the New Tax Regime . Another significant development was the TCS (Tax Collected at Source) for foreign transactions.
If you plan to invest in US stocks in 2023 , or maybe take a foreign trip and make other foreign transactions, this read is a must for you!
What is TCS in Foreign Remittance Transactions?
When people move money abroad for remittances, travel expenditures, asset purchases, shopping, and investments, they are subject to a tax known as TCS, or Tax Collected at Source. Such transfers are made possible under the LRS (Liberalised Remittance Scheme). The TCS rate for the majority of remittances (apart from those for medical and educational expenses) increased from 5% to 20% in the 2023 Union Budget. This modification aims to increase tax income and promote domestic spending. While education and medical remittances remain at 5% for sums over ₹7 lakhs, the new 20% TCS rate will be in force as of 1 October 2023. When submitting income tax returns, taxpayers can claim TCS deductions as refunds or credits, which can be used to reduce their tax obligations. Effectively handling tax liabilities in cross-border transactions requires a thorough understanding of TCS.
2023 Union Budget update in TCS
The TCS has now increased to 20% from 5% for all remittances except those concerning education or medical treatment. Remittance is any money you send abroad. You’ll still be taxed at 5% for amounts exceeding ₹7 lakhs for education and medical treatment in a foreign land.
The new TCS comes into effect from 1 October 2023 onwards.
TCS on Foreign Remittances Increased to 20% — Why?
There can be many reasons for this. While most of these pertain to increasing the tax revenue, the Indian government encourages its citizens to spend their money travelling and spending within India. But if you're planning an international travel soon, here's how 20% TCS can have an impact on it .
Outward foreign remittances were at an all-time high in 2022 , especially at a time when the Rupee was at its weakest. It might also be to ensure that those spending money abroad file returns in their own country — since it’s a direct cut to the bank at the time of remittance.
How will 20% TCS Affect Us From 1st October 2023?
- After 1st October, 2023, 20% TCS will be applied on all outward remittance without a slab for US Stocks. Let’s break this down with the help of an example. Let’s assume you invest ₹1 lakh in US Stocks. The TCS will be 20% of ₹1,00,000 which equals to ₹20,000.
- Let’s say you remit ₹20 lakhs for education or medical treatment, a TCS of 5% will be applicable for an aggregate amount that’s in excess of ₹7 lakhs. This means you will have to pay 5% on ₹13 Lakhs (₹20 Lakhs - ₹7 lakhs), which is ₹65,000.
- If you haven't started your US Stocks journey yet, here's how you can do it like a pro.
How to Get Tax Benefits From the New TCS?
The good news is that you can claim this deducted money while filing your taxes. You can get your money back in one of two ways:
- Claim it as an income tax refund.
- Claim it as a credit while filing your ITR or computing your advance taxes.
For instance, you decide to remit ₹5 Lakhs for US stock market investments. TCS on the remitted amount would be ₹1,00,000. Say, your total tax liability for the financial year or advance tax dues stand at ₹3,00,000. You can use the TCS amount to lower your outstanding tax liabilities. Thus, your new tax liability would now be ₹2,00,000.
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The 2023 Union Budget introduced significant changes to personal finance, including the implementation of a 20% TCS (Tax Collected at Source) on foreign remittances, excluding education and medical expenses. This increase in TCS aims to boost tax revenue and encourage domestic spending. Starting from 1st October 2023, the new 20% TCS rate will apply to all outward remittances.
However, there are exemptions for certain scenarios, and understanding TCS is crucial for effectively managing tax liabilities in cross-border transactions. Also, investing in US stocks through platforms like Fi provides opportunities to own shares in top US companies with user-friendly interfaces and no brokerage fees, making it accessible to a wide range of investors.
Frequently Asked Questions
1. what is the tcs limit for foreign remittances.
The TCS limit for foreign remittances in India is currently set at 5% for all foreign remittances exceeding ₹7 lakhs in a financial year. But from 1st October 2023, the new TCS rate will be 20%.
2. What is the new TCS rule in 2023?
The TCS has now gone up to 20% from 5% for all remittances except those concerning education or medical treatment. Remittance is any money you send abroad. You’ll still be taxed at 5% for amounts exceeding ₹7 lakhs for education and medical treatment in a foreign land.
3. Can I claim a TCS refund in ITR?
Yes, you can claim a TCS refund in your Income Tax Return if you have paid more TCS than your actual tax liability. To claim the TCS refund, you must fill out the ITR form's relevant sections and provide supporting documentation. Consulting a tax professional or a qualified chartered accountant is advisable if you have doubts or confusion about claiming a TCS refund in your ITR.
Tax collection at source, or TCS , is a provision of the Indian Income Tax Act. In accordance with these laws, certain individuals are compelled to collect from their customers a predetermined amount of tax on extraordinary transactions. The majority of these transactions are commercial or trading-related. Recently, the government has made new changes to the TCS laws in the overseas travel arena. In this article, we will touch upon changes you may face in TCS if you are an overseas traveler.
What is the new TCS rule 2023?
In Budget 2023, the percentage of tax deducted at source (TCS) for international transfers made under LRS increased from 5% to 20%. This covers overseas travel, remittances, and other transfers, aside from those for health, education, and medical needs. On July 1st, 2023, The new regulation was supposed to come into effect from 1st July, 2023 which has now been postponed to October 1, 2023 . For remittances under Rs. 7 lakhs, TCS formerly offered an exemption. This is no longer there.
From October 1, 2023, a 20% TCS will be required if you purchase an international tour package from a travel agent. You must pay TCS of 20% even if you buy foreign currency for your international travel individually from an authorized dealer.
How to calculate TCS on tour package?
20% of TCS will be deducted without any upper bound.
If parents want to send money to their children who are studying overseas, they must pay 5% TCS on transfers over Rs. 7 lakh. As long as the parents can demonstrate that the money is being sent for educational purposes.
Here are five points to note related to changes in TCS on international travel packages:
- Beginning October 1, 2023, a 20% TCS on an overseas tour package purchased through a travel agent will be necessary.
- Sub-section (1G) of Section 206C of the Income Tax Act has been amended to enhance TCS on the sale of abroad travel packages and on some international remittances.
- TCS of 20% must be paid even if you purchase foreign currency separately from an authorized dealer for international travel.
- TCS @ 20 will also apply to FCY Cash or Forex Cards used for overseas or foreign tour programmes.
- You can deduct TCS from your total income tax liability and claim it when filing tax returns. TCS is not an additional fee. Any remittance that has already had tax deducted at source (TDS) is also eligible for a refund.
In conclusion, the new changes in Tax Collected at Source (TCS) on overseas travel packages in India have significant implications for both customers and travel companies. The increase in TCS rates on overseas travel packages from 5% to 20% will impact the cost of travel for customers, while travel companies will need to ensure compliance with the new regulations and adjust their pricing accordingly.
- Changes in TCS on Overseas Travel Packages
- new changes in Tax Collected at Source (TCS)
Bhavika is Customer Success Manager for IRISGST at IRIS Business. An ICWA, Bhavika comes with approx 9 years of experience in Compliance Reporting. She has been handling clients in Indian Markets since the GST mandate and has profound expertise in product functioning, GST filing and issue resolution. During leisure time, she loves traveling and likes to explore new places.
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No tcs on foreign remittances of up to rs 7 lakh, credit card spending overseas; higher rates to kick in from october 1.
TCS on foreign remittances: There will be no tax collection at source (TCS) on foreign remittances of up to Rs 7 lakh per financial year, said Ministry of Finance. It has clarified that transactions done through international credit cards while being overseas would not be counted as LRS transactions and hence not subject to TCS. For overseas tour package, a TCS of 5 per cent will be levied if the amount is up to Rs 7 Lakh. The higher rate of TCS will come into effect from October 1, 2023.
New TCS rule on overseas tour packages
Higher tcs rate to come into effect from october 1, 2023, no tcs on international credit card payments, read more news on.
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Spring Break Travel Tips for U.S. Citizens Heading Abroad
Office of the Spokesperson
March 6, 2024
International travel is an opportunity for education, relaxation, and immersion in foreign cultures. As spring break approaches, the Department of State recommends U.S. citizens planning international itineraries take advantage of our resources for a safe and enjoyable trip. Whether you’re jetting off to a tropical paradise or exploring historic landmarks overseas, it is important to be aware of local laws, health considerations, and emergency resources.
To help the U.S. traveling public, we offer some essential travel tips before heading abroad:
- Research Your Destination: Before departure, familiarize yourself with the laws and customs of your destination. Visit state.gov to review our country information pages for your destination. Laws and customs vary from country to country. For example, some foreign countries’ laws have harsh penalties for possessing certain substances such as cannabis, bringing ammunition into the country, even by accident, or posting certain content on social media. Even unintentional violations can lead to serious legal consequences.
- Save the local U.S. Embassy’s Contact Information: Write down the nearest U.S. embassy or U.S. consulate’s contact details by visiting state.gov and always keep it with you. This information can be invaluable in emergency situations. Take pictures of your passport and other important documents and store them online or send them to relatives for safe keeping.
- Understand Your Health Insurance Coverage: Understand which medical services your health insurance will cover while abroad. Consider purchasing traveler’s insurance to ensure coverage for unexpected medical expenses, including medical evacuation, which can cost upwards of $100,000 depending on location and condition. Medicare/Medicaid do not cover you outside the United States.
- Check your U.S. Passport : Review your U.S. passport and renew early if necessary. Many countries require at least six months of passport validity to enter their country. Visit state.gov/passport to plan your travel with the latest passport guidance and processing tips in mind.
- Enroll in STEP: Enroll in the Smart Traveler Enrollment Program (STEP) at state.gov to receive important safety and security updates, and to make it easier for the U.S. embassy or consulate to contact you in an emergency.
- Stay Connected : Follow @TravelGov on social media for real-time updates, travel advisories, and helpful tips. Let your family and friends know your travel plans and stay in touch with them throughout your journey.
We want all U.S. citizens to have a safe and enjoyable spring break experience abroad. By following these travel tips and staying informed, travelers can minimize risks.
For more information and additional travel resources, visit travel.state.gov .
U.S. Department of State
The lessons of 1989: freedom and our future.
10% of travelers have had their medicines confiscated. Here's how you can avoid it.
It’s always a good idea for passengers to keep medicine in their carry-on bag, but even that doesn’t guarantee they’ll get to their final destination with all their prescriptions.
According to a January survey of 1,245 Americans from BuzzRx , a prescription discounting service, one in 10 Americans have had their medicine confiscated while traveling, either by the Transportation Security Administration or by border officers abroad.
“Before traveling, it’s imperative to research the destination, especially if traveling internationally, about what their medication requirements are,” Ricardo Rodriguez, a member of BuzzRx’s data team, told USA TODAY.
Rodriguez explained that some U.S. medications are not approved in other countries, which could make traveling with them complicated. “Discussing the issue with your provider will probably be the best thing to do.”
Medicine is almost equally likely to be confiscated on domestic trips, with 41% of respondents saying it has happened to them, as on international trips, with 44% of respondents saying they’d experienced it.
Planes carry medical kits. Here's why you may not rely on them in an emergency.
For domestic trips, the TSA recommends keeping your prescriptions in their original, marked containers. TSA regulations allow travelers to bring more than 3.4 ounces, the usual limit for liquids, if their medicine comes in liquid form.
Data from BuzzRx shows that one in nine travelers have had to cancel their trip after having medicine confiscated at the airport, and one in six have been able to replace their meds but had to pay full price for the prescription.
More than 50% of the respondents to BuzzRx’s survey said having their medicine increased their stress and anxiety around a trip, and 18% said it forced them to cancel some trip activities.
Anxiety medication was the most common type to be confiscated, followed by sleep aids and over-the-counter remedies.
Rodriguez said travelers should reach out to their doctor to see about getting confiscated medicine replaced, or consider seeking help from a consulate or embassy if the issue happens abroad.
Zach Wichter is a travel reporter based in New York. You can reach him at [email protected]
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U.S. Warns Spring Breakers Headed to Mexico, Jamaica or the Bahamas
In recent weeks, American travelers to some of the busiest international destinations during spring vacation have been urged by the State Department to exercise extra caution.
By Vjosa Isai
Don’t wander off the resort after dark. Keep the flashy clothing and jewelry to a minimum. Stay aware of your surroundings. Those are some of the travel rules that Ginger Moore, a retired logistics analyst from Panama City, Fla., adheres to on her solo trips throughout the Caribbean.
Ms. Moore, 75, has always felt safe during her stays in Jamaica, where she’s returning for the fourth time on Wednesday. But this year, while she’s still happy to take a trip, a travel advisory for Jamaica, reissued in January by the U.S. State Department, has elevated her concerns.
“I’m sure there are parts, just like the United States, that you can go into that are not recommended,” said Ms. Moore. Nonetheless, she has taken new precautions for her upcoming trip, like packing additional health supplies and purchasing a security bar for the sliding balcony door of her hotel room.
In recent weeks, the State Department and U.S. Embassies have issued new and updated advisories urging travelers to Mexico, Jamaica and the Bahamas — some of the busiest international spring break destinations — to exercise extra caution after recent violent events, some in tourist areas. Security experts suggest that the advice is largely consistent with advisories of previous years.
Caroline Hammer, a global security analyst at the risk intelligence company RANE , said tourists should interpret the advisories as warnings to exercise caution and avoid specific hot spots for crime, but not as a blanket rule to restrict their travel anywhere in the region.
What do the travel warnings say?
Warnings about spring break travel to certain parts of Mexico came in recent days, while the security alerts and updated travel advisories for Jamaica and the Bahamas were issued in late January.
The State Department has classified Jamaica at Level 3 since 2022, recommending visitors “ reconsider travel ” because of episodes of violent crime. The agency reissued the travel advisory in January to also alert tourists about access to medical services, and warned that “sexual assaults occur frequently, including at all-inclusive resorts.”
Kamina Johnson Smith, Jamaica’s foreign affairs and foreign trade minister, said in a statement published two days later that the country made “serious improvements” in responding to crime and in its health care infrastructure and disagreed with the scope of the advisory.
“The government of Jamaica is disappointed that the language used does not reflect our country’s significant progress,” she said.
Data from the Jamaican national police force shows that as of March 1, several crime categories, including murders, break-ins and rapes, had declined compared with the same period in 2023, though shootings and assault had risen.
In the Bahamas, gang violence and a number of murders prompted U.S. officials to urge tourists to “ exercise increased caution ,” especially in the cities of Nassau and Freeport. Recreational boat tours, jet ski rentals and other water activities are unevenly regulated, the advisory additionally notes, and have led to injuries and deaths.
In early February, two female travelers said their drinks had been spiked during a cruise stop in the Bahamas and accused resort staff of sexually assaulting them .
Last week, in a statement specifically discussing spring break travel, the U.S. Embassy in Mexico reiterated precautions outlined in a State Department travel advisory, last updated over the summer, issued because of crime and kidnappings. It reminded tourists to be cautious when visiting the downtown areas of Cancún, Playa del Carmen and Tulum, all in Quintana Roo State.
The advisory also recommends travel by toll road in daytime hours, and to remain near major cities, which have a heightened police presence and other emergency services.
What’s behind the warning in Mexico?
Organized crime groups in Mexico have largely kept violent activity outside resorts to avoid hurting the tourism industry, said Ms. Hammer, of RANE. The cartels, she said, depend on tourists themselves, by selling drugs to visitors and extorting local businesses, and it would generate a heightened response from the Mexican government.
In 2023, tourists spent close to $3.1 billion in Mexico, up 10 percent over 2022, according to data from the tourism ministry, with many travelers Cancún-bound.
A handful of violent episodes last year included the kidnappings of two Americans who had crossed the border near Brownsville, Texas, and were found dead, as well as heated disputes between rival taxi and Uber drivers in Cancún. The violence came on the heels of a number of gunfights and assassinations in late 2021 and early 2022 that rattled tourists along the Riviera Maya .
“The good news is that those incidents that have been reported inside of resorts are extremely, extremely rare,” Ms. Hammer said.
In its latest advisory, the State Department warns that shootings by rival gangs, “while not directed at tourists,” have caught some in the crossfire, even on resorts. Last month, an American woman was killed during a drug-related shooting in a beach club in Tulum. Prosecutors in Quintana Roo said she was a bystander.
Despite these incidents, the security picture in Mexico has generally remained unchanged, said Zachary Rabinor, the founder and president of Journey Mexico , a luxury travel company.
“A lot of this is kind of general, stereotypical fears,” he said, adding that tourists shouldn’t interpret violent episodes as sweeping events, especially in resort destinations most popular with visitors.
“There are definitely still areas that are troublesome, but in general, they are not where tourists are going,” Mr. Rabinor said.
What’s behind the warning for the Bahamas?
In January, the Bahamian prime minister, Philip Davis, shared his government’s plan to tamp down criminal activity after a spate of murders, mostly gang-related.
“If you choose crime, you will face the full weight and might of the law,” Mr. Davis said during a national address on Jan. 24. The admonishing tone was a sharp turn from a celebratory moment just a month earlier, when the Bahamian tourism ministry announced the country had hit a record of eight million travelers in 2023.
While the police grapple with crime off resorts, the Bahamian foreign affairs ministry said, in a statement published shortly after the U.S. Embassy alert, that the country does not believe that tourists are under any new “elevated or increased security risk.”
What can you do to stay safe?
Effective safety measures can be as simple as remaining vigilant, and planning ahead by purchasing travel insurance and updating emergency contact lists. Other general steps recommended in the advisories include avoiding walking or driving off the resort areas at night, avoiding public transit and heeding local laws.
High traveler volumes around spring break may make tourism police forces, in places where they have them, slower to respond to emergency calls, Ms. Hammer of RANE Network warned.
Arranging transportation through a travel company or a resort for excursions or trips to the airport is highly recommended, said Scott Stewart, the vice president for intelligence at the security firm TorchStone Global.
“A lot of times, there’s not a lot of a gap between criminals and taxi drivers in many countries, so using a trusted transportation provider is huge,” said Mr. Stewart.
He also recommends “traveling gray,” a term used in security circles for keeping a low profile, such as by not displaying luxury items that might draw the attention of criminals.
The State Department’s reissued warning raised concerns for Ms. Moore, the traveler heading to Jamaica, but it hasn’t deterred her from making the trip.
“In the tourist areas, I just feel very comfortable,” she said. “I’ve just never had any bad experiences, knock on wood, and I love Jamaica. That’s why I keep going back.”
Follow New York Times Travel on Instagram and sign up for our weekly Travel Dispatch newsletter to get expert tips on traveling smarter and inspiration for your next vacation. Dreaming up a future getaway or just armchair traveling? Check out our 52 Places to Go in 2024 .
An earlier version of this article misstated the title of Philip Davis. He is the prime minister of the Bahamas, not its president.
How we handle corrections
Vjosa Isai is a reporter and researcher for The Times based in Toronto, where she covers news from across Canada. More about Vjosa Isai
Open Up Your World
Considering a trip, or just some armchair traveling here are some ideas..
Italy : Spend 36 hours in Florence , seeking out its lesser-known pockets.
Southern California : Skip the freeways to explore the back roads between Los Angeles and Los Olivos , a 100-mile route that meanders through mountains, canyons and star-studded enclaves.
Mongolia : Some young people, searching for less curated travel experiences, are flocking to the open spaces of this East Asian nation .
Romania : Timisoara may be the most noteworthy city you’ve probably never heard of , offering just enough for visitors to fill two or three days.
India: A writer fulfilled a lifelong dream of visiting Darjeeling, in the Himalayan foothills , taking in the tea gardens and riding a train through the hills.
52 Places: Why do we travel? For food, culture, adventure, natural beauty? Our 2024 list has all those elements, and more .
Is Travel Insurance Worth It? Evaluating the Value and Benefits
Our experts answer readers' insurance questions and write unbiased product reviews ( here's how we assess insurance products ). In some cases, we receive a commission from our partners ; however, our opinions are our own.
- Travel insurance covers risks like trip cancellations, health emergencies, and lost luggage.
- Travel insurance costs can range from 4% to 12% of your total trip cost.
- Travel insurance is best for trips that are long, expensive, nonrefundable, and international.
Vacations can be very expensive. If you're paying a lot for yours, you might wonder if you should purchase travel insurance, especially when some costs are nonrefundable.
The answer isn't always cut-and-dried. Travel insurance isn't necessary for everyone. Whether you need it will depend on a variety of factors. Here are some key points to consider when deciding if travel insurance suits you.
Introduction to travel insurance
When planning a trip, it's essential to think about how you'll protect yourself from the unexpected. That's where travel insurance comes in. It can cover various risks like loss of personal belongings, checked baggage, and more. With the appropriate coverage, you can nullify or mitigate the potential losses. "Plain and simple, travel insurance is a layer of protection against financial loss," says Brad Cummins, owner and principal agent for Insurance Geek , an insurance comparison platform. "Whether it be lost luggage or a lost passport, travel insurance will cover the extra costs during these unfortunate events."
Benefits of travel insurance
Protection against unforeseen cancellation.
One of the top reasons to acquire travel insurance is to cover potential losses from trip cancellations. When canceling a trip due to a covered cause, travel insurance will reimburse you for prepaid, nonrefundable expenses.
Some covered causes for travel cancellations include:
- Sickness, injury, or death of traveler or family member of traveler
- Inclement weather
- Unexpected work or layoffs
- Terrorist incidents in a travel location
Some travel insurance covers trip cancellations regardless of the reason. However, you make certain trade-offs when you enroll in a "Cancel for Any Reason" (CFAR) insurance policy . These policies are more expensive and may only refund a percentage of your trip's cost. You can find our guide on the best CFAR travel insurance here.
Financial security and peace of mind
While your travel insurance covers any unforeseen issues before your trip, it continues to cover you even after your flight has taken off.
For example, you don't have to be as anxious at baggage claim when your fellow passengers have claimed their luggage and yours hasn't come out yet. Travel insurance offers lost luggage protection and can cover any necessary purchases while you wait for your late luggage to arrive, such as toiletries and a change of clothes.
Medical coverage on travel insurance can also offer peace of mind as most US health insurers don't provide coverage when you're abroad. A comprehensive travel insurance plan will cover you in an unexpected accident or emergency so you can seek medical attention for an injury sustained while traveling without worrying about mounting medical bills.
Evaluating the cost of travel insurance
The average cost of travel insurance is 5%-6% of your total trip cost. However, the exact cost will vary based on factors such as your age, travel destination, and where you live, and can be as little as 4% of your trip cost or as high as 12% of your trip cost.
If you're wondering whether travel insurance is worth it, you're not alone. There are a few things to consider. If an emergency arises on your trip, travel insurance can reimburse part or all of your vacation expenditure. However, this will depend on factors such as your trip type and whether it's refundable.
Cost vs. potential savings
In general, travel insurance is worth it if you're concerned about losing money if your trip is called off or delayed or if you're worried about medical bills while traveling. However, conducting thorough research and understanding the costs and coverage provided is critical before purchasing a policy.
For example, older travelers or those with pre-existing medical conditions may pay more for their insurance. Similarly, those traveling to high-risk destinations or participating in high-risk activities may also face higher premiums.
Ultimately, it's important to shop around and compare quotes from different travel insurance companies to find the best coverage and rate for your needs. You can find our picks for the best travel insurance companies here.
Cost-benefit analysis for different trip types
Travel insurance may be a wise investment if you've already paid for your and can't change or cancel your trip without penalty. Suppose your trip is canceled or disrupted due to a covered cause. In that case, travel insurance will cover the trip's cost and any other nonrefundable expenditures up to a pre-determined amount.
If you're heading to a country where your health coverage doesn't apply, or if you don't have any health insurance at all, travel insurance might provide the protection you need. Travel insurance can also assist you in case of medical emergencies. It's vital to understand that not all travel insurance policies are created equal. Be sure to carefully study the details and understand what is and isn't covered before purchasing one.
Scenarios where travel insurance is essential
Expensive vacations and long-term travel.
It's a good idea to insure trips with a high, nonrefundable price tag because you'll never forgive yourself if your expensive, once-in-a-lifetime trip gets canceled and your money and planning go down the drain. For these vacations, you'll want to find a policy that covers 100% of expenses.
Similarly, if you have long-term travel plans, you'll want to have a policy that protects against travel interruption in case something cuts your plans short. You'll also want medical coverage during extended stay outside the country.
High-risk destinations and activities
High-risk destinations include regions facing political instability, war zones, and areas prone to natural disasters. Travelers headed to these areas should look into travel insurance in case their trip is canceled due to an unforeseen event.
Additionally, certain areas are known for the thrilling activities they offer, like skydiving and bungee jumping. If you have extreme sports on your itinerary or believe you might build up the courage to plunge down a canyon, you may want to invest in a travel insurance policy. Keep in mind that some travel insurance policies don't cover high-risk activities, so shop carefully.
When travel insurance may not be necessary
Low-risk, short, or domestic trips.
There are also some situations in which you might not need travel insurance. If you are traveling within the US, you do not need travel insurance for health reasons since most health insurance plans will cover you even if you're not in your home state.
Additionally, travel insurance may not be necessary if you're only traveling over the weekend or exclusively booked refundable experiences.
Making an informed decision
There are a few key considerations when buying a travel insurance policy. The cost of the policy is one factor, but it's also important to look at the coverage limits and what is included and excluded in the policy. Be sure to read the fine print carefully and compare policies between different companies.
It's also important to consider the purpose of your travel insurance policy. If you're going on a trip where you'll be doing adventurous activities, ensure your policy covers those activities. Finally, remember that travel insurance is there to protect you in case something goes wrong on your trip, so don't hesitate to use it if you need to.
If you decide that you need travel insurance, here are a few things to keep in mind when shopping for a policy:
- Read the fine print of any policy you are considering to understand what is and is not covered. This is especially important for those who want to add special coverage options.
- Compare policies from different providers to find the best coverage at the best price.
- Purchase your policy well in advance of your trip so that you are covered in case of any unforeseen circumstances.
- Ensure you're covered for pre-existing conditions because a number of policies will exclude pre-existing conditions if you don't pay extra for a waiver or additional coverage.
Buying travel insurance can be a pretty quick and painless process, thanks to insurance aggregator sites like SquareMouth .
Using SquareMouth is one of the easiest ways to see multiple coverage options simultaneously. Once you've entered some personal details and information regarding your trip, you'll see a variety of insurance providers and plans from which to choose.
Assessing personal and trip risks
The first consideration you should factor into travel insurance is how much of your trip is already paid for. If you've prepaid for most or all of your travel expenses, you may want to purchase travel insurance if you have to cancel.
Another thing to consider is where you will be traveling. If you are visiting multiple countries, getting insurance that covers you in all of them might be a good idea.
Your age and overall health can also determine whether you need travel insurance. Suppose you are older or have pre-existing medical conditions, for example. In that case, it might be a good idea to purchase travel insurance if you need to cancel your trip or incur unexpected medical expenses.
Lastly, the value of your luggage can also be a factor to consider. If you plan to bring expensive items with you on your trip, it might be worth purchasing travel insurance to cover lost or stolen luggage.
Reviewing policy options and exclusions
When it comes to travel insurance, the ease of use will depend on the provider you choose. If you're working with a reputable insurer, then the process should be relatively straightforward. However, it's still important to understand what is and isn't included in your policy before you purchase it. This way, you can be sure that you're getting the coverage you need and that you won't be caught off guard by any fine print.
Travel insurance isn't necessary for everyone or every trip. But it can bring a lot of peace of mind during your travels and can certainly translate into significant savings if you're faced with a medical emergency while on your trip. It's best to do your research, compare plans, and understand your own level of risk when it comes to deciding whether or not to purchase coverage.
Travel insurance frequently asked questions
Travel insurance is highly recommended for trips that are long and expensive. For example, you should buy travel insurance for any international trips, cruises, adventure travels, and trips with significant pre-paid expenses.
To say that travel insurance will save you money in the long run isn't entirely accurate. Travel insurance will save you money when things go wrong, but it won't save you any money if your trip goes smoothly.
Short domestic trips don't necessitate travel insurance. Most health insurance policies cover you from state to state, so unless you're worried about unexpected cancellations, travel insurance isn't a must-have.
Travel insurance policies commonly exclude coverage for pre-existing medical conditions, extreme sports injuries, and travel to high-risk countries.
Cost-benefit considerations should include the total cost of your trip, the refundability of your expenses, your destination's healthcare costs, and your personal health and travel risks.
Editorial Note: Any opinions, analyses, reviews, or recommendations expressed in this article are the author’s alone, and have not been reviewed, approved, or otherwise endorsed by any card issuer. Read our editorial standards .
Please note: While the offers mentioned above are accurate at the time of publication, they're subject to change at any time and may have changed, or may no longer be available.
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This Airport Was Just Named the Most Luxurious in the World
Dubai International Airport is focused on making the airport an experience in itself.
Walter Bibikow/Getty Images
The most luxurious airport in the world is located in a city intent on building the biggest and best of everything: Dubai .
Dubai International Airport (DXB) was recently named the most opulent, according to a study from AllClear Travel Insurance . The airport in the United Arab Emirates, which is focused on making the airport an experience in itself , took the top spot mostly due to the more than 70 luxury hotels within a three-mile radius of the terminal.
“Dubai as a destination is well known across the world for luxury and wealth, so it’s not too surprising that the airport ranks as the most luxurious on the globe,” the study wrote about its decision. “The airport is the fastest-growing aviation hub in the world, and it even has its own 5-star hotel located inside the airport itself. With zen gardens, an outdoor swimming pool, a gym, cinemas, and a bounty of restaurants – this is one airport that will certainly leave you feeling refreshed ahead of jumping on your flight.”
The study examined more than 1,800 airports and looked at which terminals offered at least 10 lounges , surveyed the number of designer shops available, noted the number of luxury hotels in the area, and checked whether travelers could find perks like Champagne or caviar before boarding.
London’s Heathrow Airport (LHR) came in at No. 2 on the list thanks to its impressive number of lounges and amount of luxury shops. Qatar’s Hamad International Airport (DOH) in Doha, which added an exclusive new Louis Vuitton restaurant and lounge last year, took the third spot on the list.
France's Paris Charles de Gaulle Airport (CDG) and Australia's Sydney Airport (SYD) rounded out the top 5.
New York City’s John F. Kennedy International Airport (JFK) was the highest-ranked airport in the United States and came in at No. 11 on the list. That was followed by Los Angeles International Airport (LAX) at No. 16 — it was the only other U.S. airport to make the top 20.
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CBP officers, agriculture specialists intercept howler monkeys at Brownsville and Matamoros International Bridge
BROWNSVILLE, Texas – U.S. Customs and Border Protection officers and agriculture specialists at the Brownsville and Matamoros International Bridge intercepted two live howler monkeys in a vehicle in a single enforcement action.
“Our frontline CBP officers’ diligence in the performance of their duties led them to the discovery of two live howler monkeys transported in a vehicle,” said Acting Port Director Michael B. Reyes, Brownsville Port of Entry. “CBP remains committed to preventing the exploitation of protected animals and the spread of animal diseases.”
The incident occurred on Mar. 4 at the Brownsville and Matamoros International Bridge when a 29-year-old male Mexican citizen attempted entry into the United States in a 2015 Chevrolet pickup. CBP officers referred the vehicle for a secondary inspection. In secondary, CBP officers and agriculture specialists discovered two live howler monkeys inside the vehicle.
Homeland Security Investigations special agents initiated a criminal investigation and arrested the driver. The vehicle was seized. The monkeys were turned over to the U.S. Fish and Wildlife Service and will be housed at the Gladys Porter Zoo in Brownsville, Texas.
CBP would like to remind the public of the U.S. Department of Agriculture Animal and Plant Health Inspection Service regulations that prohibit live birds, fresh eggs, and raw poultry from Mexico. According to the USDA APHIS, Mexico is affected with virulent Newcastle disease and Highly Pathogenic Avian Influenza. Both diseases affect poultry, are serious diseases of concern, and are highly contagious. In addition, howler monkeys are protected under the Convention on International Trade in Endangered Species of Wild Fauna and Flora, their importation is regulated by the Centers for Disease Control and Prevention. Ultimately monkeys are prohibited from importation as pets.
On the border at land, air, and sea-based ports of entry, including Laredo, CBP officers and agriculture specialists continue to fulfill CBP’s agriculture mission by excluding harmful pests and diseases from becoming established in the United States. Read more about CBP’s agriculture mission. More information regarding HPAI or virulent Newcastle disease can be found on USDA's Highly Pathogenic Avian Influenza (HPAI) and Virulent Newcastle Disease (vND) pages.
Follow the Director of CBP’s Laredo Field Office at @DFOLaredo and also U.S. Customs and Border Protection at @CBPSouthTexas for breaking news, current events, human interest stories and photos.
U.S. Customs and Border Protection is the unified border agency within the Department of Homeland Security charged with the comprehensive management, control, and protection of our nation’s borders, combining customs, immigration, border security, and agricultural protection at and between official ports of entry.
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Get insights into the new Tax Collection at Source (TCS) rules effective from October 1, 2023, impacting foreign trips. Discover tips to reduce TCS on global journeys, understand the Liberalised Remittance Scheme (LRS) changes, and unlock the complexities for international travelers. Learn how TCS applies to various expenses, including education, medical purposes, and overseas tour packages ...
Starting from July 1, 2023, a tax collected at sources (TCS) of 20 per cent will apply to overseas tour packages. At present, if you book a foreign tour package, you have to pay a TCS of 5 per cent. From next month, you will have to bear a higher upfront cost while travelling. While you can claim a refund on TCS while filing your income tax ...
20% TCS on overseas tour package: When you book, offline or online, overseas tour packages, offline or online, of more than Rs 7 lakh in a financial year, you have to pay TCS at 20% from October 1, 2023. ... "To qualify as an overseas tour programme package, there has to be at least two of the following: international travel ticket; hotel ...
TCS on Overseas Tour package. Get ready to shell out more for overseas tour packages from July 1, 2023! A 20% TCS on international remittances will impact travel costs, but there are ways to navigate this increase. Understand the implications and explore alternatives to minimize the impact on your international travel budget.
Consequently, TCS can be avoided up to Rs 7 lakh when booking online through an international travel website. 2) Separate booking and payments can help you save TCS. Another critical point is that a 20% TCS is levied on overseas tour packages. However, the definition of a "tour package" under the law is unclear. In light of the proposed ...
If you are buying a foreign tour package from a travel agent, you have to pay a tax collection at source (TCS) of 20% from July 1, 2023. Budget 2023 has hiked the TCS rate for foreign remittances under the LRS from 5% to 20% (except for education and medical purposes). With this sharp rise in TCS, foreign trips are likely to become costlier soon.
What is the new 20% TCS rule? Previously, the TCS on international spending was 5%. Starting 1 July, this will increase to 20%. This means that any travel bookings you make, July onwards, will cost 20% more upfront. Any international travel package, airline and accommodation bookings will be 20% higher in cost than before. "Suppose you're ...
Important changes w.r.t Liberalised Remittance Scheme (LRS) and Tax Collected at Source (TCS) No change in rate of TCS for all purposes under LRS and for overseas travel tour packages, regardless of mode of payment, for amounts up to Rs. 7 lakh per individual per annum Government gives more time for implementation of revised TCS rates and for inclusion of credit card payments in LRS Increased ...
International travel plans will get costlier and TCS on overseas tour packages will now attract a higher TCS rate of 20% instead of the previous rate of 5% if the total spend is above ₹ 7 lakh.
Any international travel package, airline and accommodation bookings cost more from July 1, because any spending through a debit card, credit card, foreign currency or forex card outside India will attract the 20 per cent TCS. TCS is applicable whether the payment for the tour package is made in Indian rupees or foreign currency.
As per the Budget 2023, the purchase of overseas tour packages from a travel agent worth more than 7 lakhs in a financial year will be subject to an increase in TCS (Tax Collected at Source) rate of 20%, a three-fold jump from current 5%, starting October 1 st 2023. One has to pay 20% TCS even if they buy foreign currency for their ...
The world of international travel is about to face a significant change. Starting from 1st October 2023, a new rule will be implemented that will impact every transaction made abroad. ... The Impact of the 20% TCS Rule on Travel. With the new 20% TCS rule coming into effect from October 1, 2023, there will be a significant increase in expenses ...
Impact of 20% TCS. Starting from July 1, 2023, the rate of TCS on international credit card transactions has been increased from 5% to 20%, as announced in the Budget 2023-24. This means that foreign currency transactions made using an international credit card within the limit of USD 2,50,000 will be subject to a hefty TCS of 20%.
The Government vide Finance Act, 2020, amended section 206C of the Act, and introduced sub-section (1G) to section 206C, covering remittances made under LRS and Overseas Tour Package Program under the ambit of TCS and mentioning that under LRS, if an amount greater than Rs. 7 Lakh is remitted, then TCS @ 5% shall be applicable.
Suppose you purchased a Rs 9,00,000 foreign tour package during a financial year. As per the new proposed rate, starting Oct1, 2023, for an overseas tour package purchase, you will be charged 20% TCS on overseas tour packages on amounts exceeding Rs 7 lakhs. This means that you must pay { (2,00,000)* (20/100)}=Rs 40,000 as TCS on international ...
If you are planning an international trip with any travel company, you must be aware of the new Tax Collected at Source (TSC) rule. For every online and offline booking of an international tour package that costs more than Rs 7 lakhs in a financial year, the traveler has to pay TCS at 20%. For packages costing less than or equal to Rs 7 lakh ...
The travel and tourism industry in India is undoubtedly passing through a horrendous phase since the last few years. A simple business of helping travellers book air tickets, hotels, tour packages, visas and ancillary services has been turned into a complex web of riddles since the introduction of GST and subsequently TCS. The industry barely survived the aftermath of COVID-19 and the ...
The TCS has now increased to 20% from 5% for all remittances except those concerning education or medical treatment. Remittance is any money you send abroad. You'll still be taxed at 5% for amounts exceeding ₹7 lakhs for education and medical treatment in a foreign land. The new TCS comes into effect from 1 October 2023 onwards.
Beginning October 1, 2023, a 20% TCS on an overseas tour package purchased through a travel agent will be necessary. Sub-section (1G) of Section 206C of the Income Tax Act has been amended to enhance TCS on the sale of abroad travel packages and on some international remittances. TCS of 20% must be paid even if you purchase foreign currency ...
"The interim budget 2024 has proposed to increase the rate of TCS to 20 per cent from 5 per cent on purchase of overseas tour packages as amendment to section 206C with effect from October 1, 2023. This will affect foreign expenditures exceeding Rs 7 lakh annually per individual," said tax advocate Narayan Jain.
TCS on foreign remittances: There will be no tax collection at source (TCS) on foreign remittances of up to Rs 7 lakh per financial year, said Ministry of Finance. It has clarified that transactions done through international credit cards while being overseas would not be counted as LRS transactions and hence not subject to TCS. For overseas tour package, a TCS of 5 per cent will be levied if ...
Travel in comfort aboard the brand-new A321 private jet to explore some of the world's most extraordinary places and natural wonders. Discover legendary destinations, from Machu Picchu to the Taj Mahal, Angkor Wat to Easter Island. Multiple departure dates are available. view upcoming departures. The Airbus A321: State-Of-The-Art Aircraft -TCS ...
International travel is an opportunity for education, relaxation, and immersion in foreign cultures. As spring break approaches, the Department of State recommends U.S. citizens planning international itineraries take advantage of our resources for a safe and enjoyable trip. Whether you're jetting off to a tropical paradise or exploring historic landmarks overseas, it is important to […]
Medicine is almost equally likely to be confiscated on domestic trips, with 41% of respondents saying it has happened to them, as on international trips, with 44% of respondents saying they'd ...
Don't wander off the resort after dark. Keep the flashy clothing and jewelry to a minimum. Stay aware of your surroundings. Those are some of the travel rules that Ginger Moore, a retired ...
Travel insurance costs can range from 4% to 12% of your total trip cost. Travel insurance is best for trips that are long, expensive, nonrefundable, and international. Vacations can be very expensive.
Now in its 60th year, the IATA Annual Safety Report - compiled by the International Air Transport Association - has been tracking the evolution of commercial aviation safety since 1964.
The most luxurious airport in the world is located in a city intent on building the biggest and best of everything: Dubai. Dubai International Airport (DXB) was recently named the most opulent ...
BROWNSVILLE, Texas - U.S. Customs and Border Protection officers and agriculture specialists at the Brownsville and Matamoros International Bridge intercepted two live howler monkeys in a vehicle in a single enforcement action. "Our frontline CBP officers' diligence in the performance of their duties led them to the discovery of two live howler monkeys transported in a vehicle," said ...