What TCS on a tour package is
TCS, tax collected at source, is income tax that the seller collects from the buyer at the time of sale and deposits with the government against the buyer's PAN. For travel, it applies when you sell an overseas tour programme package: a package that covers travel outside India, usually with the stay, transport and sightseeing bundled.
If you sell the package, you collect the TCS. That is the agency or tour operator that takes the customer's money for the package, not the airline or the hotel abroad.
The rate from 1 April 2026
From 1 April 2026, TCS on an overseas tour package is 2% of the amount, from the first rupee, whatever the size of the booking. The Finance Act, 2026 set this in the table under section 394(1) of the Income-tax Act, 2025, the new Act that replaced the Income-tax Act, 1961 on the same date. The old provision was section 206C(1G).
The Finance Bill's memorandum states the purpose plainly: remove the ₹10 lakh threshold for the higher 20% rate, and collect TCS on the sale of an overseas tour programme package at 2% irrespective of the amount.
| Example | Amount |
|---|---|
| Package price, Dubai, family of four | ₹2,40,000 |
| TCS at 2% | ₹4,800 |
| The customer pays | ₹2,44,800 |
When you collect it
You collect TCS when you receive the payment, or when you debit the amount to the customer's account, whichever comes first. If a family pays a booking amount now and the balance later, each payment carries its own TCS at the rate in force on the day you receive it.
Get the PAN first
Ask for the buyer's PAN before you take the money. Without a PAN, a higher rate applies, and the customer cannot claim the credit for the tax they paid. Put the PAN on the invoice and the receipt.
How the rate has changed
The rate has changed four times since TCS on tour packages began, so a quotation or a calculator from a year ago may be wrong today.
| Payments received | Rate | Source |
|---|---|---|
| 1 Oct 2020 to 30 Sep 2023 | 5%, no threshold | Finance Act, 2020, section 206C(1G) |
| 1 Oct 2023 to 31 Mar 2025 | 5% up to ₹7 lakh a year, 20% above | Finance Act, 2023; CBDT press release, 28 Jun 2023 |
| 1 Apr 2025 to 31 Mar 2026 | 5% up to ₹10 lakh a year, 20% above | Finance Act, 2025 |
| From 1 Apr 2026 | 2%, from the first rupee | Finance Act, 2026; section 394(1), Income-tax Act, 2025 |
After you collect it
- Deposit the TCS with the government by the due date for the month you collected it.
- File the quarterly TCS statement, so the tax reaches the customer's PAN.
- Give the customer a TCS certificate. It lets them take credit for the tax in their return.
Most agencies leave the deposit and the statement to their CA. What your CA needs from you is a clean list: which ticket, which customer, the PAN, each payment and the TCS on it.
How Triplli handles TCS
In Triplli you switch on TCS for the ticket, type the rate and the customer's PAN. TCS is added on top of the trip price. The invoice shows it below the GST total, every receipt shows it in the balance, and the Excel file for your accountant lists it against each invoice. Triplli never picks the rate for you: you type it, because it changes with the Budget. See GST and TCS invoices in Triplli.
Sources
- The Finance Bill, 2026, clause 73(f) and its memorandum (as introduced, indiabudget.gov.in), enacted as the Finance Act, 2026 (assent 30 Mar 2026).
- The Income-tax Act, 2025, section 394(1), in force from 1 Apr 2026.
- CBDT press release on TCS under the Liberalised Remittance Scheme and on overseas tour packages, 28 Jun 2023 (pib.gov.in).
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.
