Budget 2026: Big news for everyone. The government has suggested that TDS on properties sold by NRIs will now be deducted and paid by resident buyers using a PAN-based challan. This change will remove the requirement for a TAN (Temporary Accounting Number) and make compliance simpler.

Meanwhile Finance Minister Nirmala Sitharaman announced a significant reduction in the TCS rate on overseas tour packages. Previously, travelers had to pay 5 to 20 percent TCS when booking overseas tour packages, but the government has now reduced it to just 2 percent. This decision will require those planning foreign travel to pay a lower deposit upon booking, making tour packages significantly more affordable.

Along with tourism, the government has also adopted a more lenient stance on overseas education. The Liberalized Remittance Scheme (LRS) announced a reduction in the TDS on remittances abroad for educational purposes. This move will directly benefit thousands of students and parents who send large sums of money abroad for university fees or living expenses. This reduced tax burden will make it easier and more affordable for middle-class families to provide international education to their children.

For some time now, there has been considerable concern among the travel industry and the general public regarding the high TCS on foreign travel. Previously, the 20% tax deduction after a certain threshold would block people’s working capital, which would later have to be recovered as a refund. Now, reducing it to 2% means you’ll save cash and reduce your travel expenses. This will not only benefit individual tourists but will also revitalize India’s outbound tourism industry.