For some time now, Indian people have started liking to travel abroad. Whenever there is a few days time, Indian people reach thailand, London, America etc. to visit.
Why is travelling abroad expensive?
For your information, let you know that during Budget 2023, Union Finance Minister Nirmala Sitharaman had proposed to increase tax collected at source i.e. TCS to 20 percent.
TCS was earlier 5 per cent, but from July 2023 it will be reduced to 20 per cent. This 20 percent TCS rule will also apply to international transactions or credit cards.
Suppose if you want to convert Rs 5 lakh to US dollars to travel in countries like Thailand, America, London etc., then the bank will deduct 5 percent TCS on Rs 20 lakh, which will be Rs 1 lakh. However, this amount can be obtained through income tax returns.
Will it affect tourists?
It is being said that after this new rule, the number of people traveling abroad is slightly less. However, some people believe that if your money is deducted as tax, then after some time you can get your money by filing income tax returns. In such a situation, the dream of traveling abroad will also be fulfilled and full money will also be received.
Tour packages may be affected
When it comes to traveling abroad, many people look for cheap tour packages. People book tour packages only after comparing some tour packages. In such a situation, if you are booking a tour package of 1 lakh, then 20 percent TCS will be deducted. However, if you book a tour package from a domestic and foreign site. Then there may be a difference in the amount between the two.