New Delhi, Feb. 1 -- In a move expected to ease the tax burden on people buying foreign tour packages, Budget 2026 has proposed reducing the tax collected at source (TCS) from 5% and 20% to a uniform 2%, irrespective of the amount spent.

Currently, packages up to Rs.10 lakh attract 5% TCS and those in excess of Rs.10 lakh attract 20%.

The Budget has also proposed lowering the TCS rate on expenses incurred for pursuing education and for medical treatment abroad under the liberalized remittance scheme (LRS). These categories currently attract a 5% TCS in excess of Rs.10 lakh, which is now proposed to be lowered to 2%, easing the upfront tax impact on families funding overseas education or medical care.

However, education expenses finance...