Navigating 20% TCS: Smart tips for your overseas holiday this summer

Reduce trip duration if necessary, use prepaid forex card to nullify currency fluctuation, buy adequate insurance

Those planning overseas travel got a rude shock when the government announced a 20 per cent tax collection at source (TCS) from July 1, 2023, on foreign travel related expenditures (on credit card related expenses, TCS kicks in on expenditure above Rs. 7 lakh). This implies an escalation in your budget for an overseas holiday.

“The imposition of TCS has become a crucial financial aspect to consider when organising an overseas trip. In the short run, this step will significantly impact plans as the total outlay will increase considerably,” says Rikant Pittie, co-founder, EaseMyTrip.

Many travellers may have to reconfigure