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MC explains | 20% TCS on foreign spends: Credit card spends when overseas exempt for now, booking international flights, hotels separately can minimise tax impact - Vimarsana News

MC explains | 20% TCS on foreign spends: Credit card spends when overseas exempt for now, booking international flights, hotels separately can minimise tax impact

The government has clarified that standalone purchases of foreign flights or hotel stays are not considered as a purchase of an overseas tour package; they are covered under LRS.

Holidays booked with foreign tour operators escape 20% TCS, but Indian tour operators must collect this tax - Vimarsana News

Holidays booked with foreign tour operators escape 20% TCS, but Indian tour operators must collect this tax

The 20% Tax Collected at Source (TCS) rule for overseas tour packages seems to have a loophole. Booking such a package with an Indian tour operator attracts TCS right away. With a foreign tour operator, you can escape TCS until international payments on your credit card cross Rs 7 lakh a year.