India, Feb. 1 -- Indian travellers planning trips abroad may find the coming months particularly favourable, following a sharp reduction in tax collection at source (TCS) on overseas tour packages announced in the Union Budget on Sunday by Finance Minister Nirmala Sitharaman.

Under the new provisions, TCS on overseas tour packages has been reduced from the earlier 5-20% range to 2%, without any threshold amount.

Additionally, TCS under the Liberalized Remittance Scheme (LRS) for education and medical purposes has also been lowered from 5% to 2%.

The Ministry of Finance further stated, "It is proposed that the supply of manpower services be brought within the ambit of payment to contractors for the purpose of TDS. TDS on these services ...