{"id":5539,"date":"2023-04-25T12:43:46","date_gmt":"2023-04-25T12:43:46","guid":{"rendered":"https:\/\/www.caindelhiindia.com\/blog\/?p=5539"},"modified":"2023-04-25T13:39:18","modified_gmt":"2023-04-25T13:39:18","slug":"tcs-on-overseas-tour-package","status":"publish","type":"post","link":"https:\/\/www.caindelhiindia.com\/blog\/tcs-on-overseas-tour-package\/","title":{"rendered":"TCS on Foreign\/Overseas Tour Package"},"content":{"rendered":"<h2><img loading=\"lazy\" decoding=\"async\" class=\"alignnone wp-image-5540\" src=\"https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2023\/04\/Tax-collection-at-source-on-foreign-or-overseas-tour-package..jpeg\" alt=\"TCS on foreign or overseas tour package.\" width=\"1074\" height=\"537\" srcset=\"https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2023\/04\/Tax-collection-at-source-on-foreign-or-overseas-tour-package..jpeg 318w, https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2023\/04\/Tax-collection-at-source-on-foreign-or-overseas-tour-package.-300x150.jpeg 300w\" sizes=\"(max-width: 1074px) 100vw, 1074px\" \/><\/h2>\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_58 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<p class=\"ez-toc-title\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-69deba3d9981e\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-69deba3d9981e\"  aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/www.caindelhiindia.com\/blog\/tcs-on-overseas-tour-package\/#Tax_collection_at_source_on_foreignoverseas_tour_package\" title=\"Tax collection at source on foreign\/overseas tour package\">Tax collection at source on foreign\/overseas tour package<\/a><ul class='ez-toc-list-level-3'><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/www.caindelhiindia.com\/blog\/tcs-on-overseas-tour-package\/#Present_TCS_rate_Budget_Proposed_TCS_rate\" title=\"Present TCS rate &amp; Budget Proposed TCS rate\">Present TCS rate &amp; Budget Proposed TCS rate<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/www.caindelhiindia.com\/blog\/tcs-on-overseas-tour-package\/#Conclusion_on_TCS_on_Overseas_Tour_Package\" title=\"Conclusion on TCS on Overseas Tour Package: \">Conclusion on TCS on Overseas Tour Package: <\/a><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<h2><span class=\"ez-toc-section\" id=\"Tax_collection_at_source_on_foreignoverseas_tour_package\"><\/span><span style=\"color: #000080;\"><strong>Tax collection at source on foreign\/overseas tour package<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<ul>\n<li>With effect From July 1, 2023, a 20 percentage Tax collection at source\u00a0will be required on an international tour package from a travel agent.<\/li>\n<li>In order to increase Tax collection at source\u00a0on some foreign remittances &amp; on sale of international or overseas tour packages, Income tax act amendment has been made in section 206C(1G) of the Income Tax Act.<\/li>\n<li>Tax collection at source of 20 percentage has to be paid even if you buy foreign currency for international travel individually from an AD (authorised dealer).<\/li>\n<li>Foreign Currency(FCY) Cash or Forex Cards availed towards Foreign \/ international \/ Overseas tour programme, will also attract Tax collection at source @ 20 percentage.<\/li>\n<li>Tax collection at source\u00a0is not an additional charge and can be adjusted against your total income tax liability &amp; claimed while filing income tax returns. Person may also claim a income tax refund if the above remittance is from an income that is already TDS.<\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"Present_TCS_rate_Budget_Proposed_TCS_rate\"><\/span><span style=\"color: #000080;\"><strong>Present TCS rate &amp; Budget Proposed TCS rate<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"color: #000080;\"><strong>Present Tax collection at source rate &amp; Budget Proposed Tax collection at source rate are as below:<\/strong><\/span><\/p>\n<ul>\n<li>If the matter related to education, if the amount being remitted out is a loan obtained from any financial institution as defined in section 80E of income tax act , the present rate is 0.5 percentage of amount or total of the amounts in more than of INR 7,00,000\/-. The proposed rate has remained unchanged in the budget.<\/li>\n<li>If the matter related to education, other than above or for the purpose of medical treatment, the present rate is 5 percentage of the amount or the total of the amounts in More than of INR 7,00,000\/-. The proposed rate remains unchanged.<\/li>\n<li>Overseas tour package \u2013 present TCS Rate 5 percentage without any threshold limit. \u2013 Proposed Rate is now 20% without any threshold limit.<\/li>\n<li>Any other case \u2013 5 percentage of the amount or the total amounts in more than of INR 7,00,000\/-. Proposed rate us now 20% without any threshold limit.<\/li>\n<li>Above said income tax amendment applicable w.e.f. 1st July, 2023.<\/li>\n<\/ul>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"alignnone wp-image-5541\" src=\"https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2023\/04\/Tax-collection-at-source-on-overseas-tour-package..jpeg\" alt=\"Tax collection at source on overseas tour package.\" width=\"1036\" height=\"469\" srcset=\"https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2023\/04\/Tax-collection-at-source-on-overseas-tour-package..jpeg 318w, https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2023\/04\/Tax-collection-at-source-on-overseas-tour-package.-300x136.jpeg 300w\" sizes=\"(max-width: 1036px) 100vw, 1036px\" \/><\/p>\n<h3><span class=\"ez-toc-section\" id=\"Conclusion_on_TCS_on_Overseas_Tour_Package\"><\/span><span style=\"color: #000080;\"><strong>Conclusion on TCS on Overseas Tour Package: <\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul>\n<li>In case you are going to purchase a international or overseas tour package from a travel agent, than such person have to pay a TCS of\u00a0@ 20 percentage with effect from July 1, 2023.<\/li>\n<li>So Now international tour packages become costlier: Travel costs to foreign countries are anticipated to increase soon with this sharp increase in tax collection at source. Since the tax collection at source will be paid by the party sending the money, not the tour originations themselves, there has been no negative impact on tour originations. Of course, the tour operators will insist on full payment and this will continue to be the policy moving into the future.<\/li>\n<li>The law&#8217;s definition of what a tour package is leaves some room for reinterpretation. As opposed to buying a full holiday package, it will be preferable to arrange individual tour components directly, such as hotel rooms &amp; airline tickets.<\/li>\n<li>People may choose to book their flights, accommodations, and sightseeing separately in order to avoid making a package and being subjected to the Tax collection at source impose in light of the anticipated increase of this tax.<\/li>\n<li>Additionally, transactions made using credit cards typically take place outside of the LRS. The usual guidelines for revenue account transactions apply to them.<\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>Tax collection at source on foreign\/overseas tour package With effect From July 1, 2023, a 20 percentage Tax collection at source\u00a0will be required on an international tour package from a travel agent. In order to increase Tax collection at source\u00a0on some foreign remittances &amp; on sale of international or overseas tour packages, Income tax act &hellip;<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_mi_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[100],"tags":[972],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/posts\/5539"}],"collection":[{"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/comments?post=5539"}],"version-history":[{"count":5,"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/posts\/5539\/revisions"}],"predecessor-version":[{"id":5544,"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/posts\/5539\/revisions\/5544"}],"wp:attachment":[{"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/media?parent=5539"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/categories?post=5539"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/tags?post=5539"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}