TCS Update

Why is TCS charged?

As per section 206C(1G), the TCS would be applicable on all foreign travel related expenditure. The overseas tour package has been defined to include more than one travel product sold to passengers for travelling outside of India. The travel agent would be required to collect TCS on overseas tour package as well as single travel product at the rate mentioned below:

TCS Rate for travel International: 


Standalone Hotel (Single travel product)

Overseas tour package

Cumulative remittance under LRS against PAN does not exceeds 7 Lac in financial year



Cumulative remittance under LRS against PAN exceeds 7 Lac in financial year



1. Whether purchase of international travel ticket or hotel accommodation on standalone basis is purchase of overseas tour program package?

The overseas tour package is defined as to mean any tour package which offers visit to a country or countries or territory or territories outside lndia and includes expenses for travel or hotel stay or boarding or lodging or any other expenditure of similar nature or in relation thereto.
It is made clear that buying a single international flight ticket or a single hotel room does not fall under the definition of a "overseas tour programme package." At least two of the following must be present for the package to be considered a "overseas tour programme package":
(i)International travel ticket
(ii)Hotel accommodation (with or without food)/boarding/lodging
(iii)Any other expenditure of similar nature or in relation thereto

2. Will TCS be an extra cost?

No, TCS is fully offset against the passenger's income tax due for the applicable financial year, and there will be no additional cost to the passenger.

3. Which PAN should be used while making a reservation?

The PAN entered should be correct and operational. The PAN entered must be the traveller's PAN.

4. Should the PAN issued be linked to Aadhaar?

According to government guidelines, the deadline for linking PAN with Aadhaar was June 30, 2023, after which any individual who failed to link their PAN-Aadhaar, PAN became inoperative. As a result, it is requested that the PAN be connected to Aadhaar.

5. Should the traveller's declaration be required?

Yes, you must give the following declaration to the Travel Company or Travel agent.Declaration from the traveller stating the amount of LRS limit applied to his/her PAN for the current financial year.Declaration by the traveller that the LRS limit against his/her PAN used by the traveller during the current financial year has not exceeded the USD 250,000 limit or the limit permitted by the RBI. A declaration must be obtained from the passenger whose PAN data are stated while booking that his LRS limit will be used for the travel of other passengers. This declaration would only apply if numerous travellers booked with a single or multiple PAN. In the case of a corporate booking, a declaration from the corporate stating that the corporate has approved the Travel Agent to make the booking and that the travellers are company employees whose expenses will be borne by the corporate.

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