2% applies to payments received from 1 Apr 2026 (Finance Act, 2026). Change it if your CA says otherwise.
- Package amount
- ₹0
- TCS
- ₹0
- The customer pays
- ₹0
TCS rounded to the rupee. Collect it on each payment as you receive it.
How the calculation works
TCS on an overseas tour package is a percentage of the amount you receive for the package. From 1 April 2026 the rate is 2%, from the first rupee, under section 394(1) of the Income-tax Act, 2025. There is no longer a ₹10 lakh threshold or a 20% rate for larger bookings.
| Package amount | TCS at 2% | The customer pays |
|---|---|---|
| ₹1,00,000 | ₹2,000 | ₹1,02,000 |
| ₹5,00,000 | ₹10,000 | ₹5,10,000 |
| ₹12,00,000 | ₹24,000 | ₹12,24,000 |
Before 1 April 2026, the same ₹12,00,000 booking would have been taxed at 5% on the first ₹10 lakh and 20% on the rest. The TCS guide has the full rate history.
When the customer pays in parts
You collect TCS when you receive each payment, or when you debit it to the customer's account if that comes first. A booking amount of ₹50,000 today carries ₹1,000 of TCS today; the balance carries its own TCS when it arrives.
Where TCS shows
Show TCS as its own line, below the GST total, on the invoice and on each receipt, with the customer's PAN. In Triplli you switch TCS on for the ticket and type the rate; the invoice, every receipt and the file for your accountant carry it from there.
This describes the law as of 28 Sep 2026, from the sources named on this page. It is not tax advice. Rates change with the Budget and the GST Council, so confirm with your CA before you invoice.
