20% on the portion exceeding \u20b910 lakh.<\/li>\n
\n<\/ul>\n
\nVinay Bagri, CEO & Co-founder of Niyo, explains, \u201cThe lower rate of 5% applies on overseas tour packages up to \u20b910 lakh for an individual resident. Once the amount paid exceeds \u20b910 lakh, the rate of 20% applies on the amount above that threshold.\u201d<\/p>\n
According to Shefali Mundra, Tax Expert at ClearTax, if a package costs \u20b912 lakh, TCS will be 5% on the first \u20b910 lakh and 20% on the remaining \u20b92 lakh.<\/p>\n
The operator must deposit TCS with the government and issue Form 27D to the traveller.<\/p>\n
Why TCS credits are often missed<\/strong><\/p>\nMany travellers fail to claim TCS because they do not realise it is an advance tax already paid on their behalf, not an extra charge.<\/p>\n
Bagri highlights the common issues:
\n<\/p>\n
<\/p>\n- Travel agents may not report TCS under the correct PAN.<\/li>\n
<\/p>\n
- Travellers may not verify Form 26AS or AIS before filing returns.<\/li>\n
<\/p>\n
- Errors in ITR filing can prevent claiming the credit.<\/li>\n
\n<\/ul>\n
\nHe adds, \u201cAfter you pay for a tour package, confirm that your PAN is updated with the travel operator. Check Form 26AS\/AIS to ensure TCS is correctly reflected, and enter the credit exactly as shown when filing your ITR.\u201d
\nMundra further notes, \u201cEven if income is below the taxable limit, filing the ITR ensures TCS gets fully adjusted against tax liability and any excess is refunded.\u201d<\/p>\n
Claiming TCS Credit<\/strong><\/p>\nAccording to Mundra, the process is systematic:<\/em>
\n<\/p>\n
<\/p>\n- Collect Form 27D from the travel agency showing PAN, TCS amount, and date.<\/li>\n
<\/p>\n
- Verify Form 26AS under \u2018e-File\u2019 \u2192 Part VI to confirm TCS entries.<\/li>\n
<\/p>\n
- Select the appropriate ITR form based on income sources.<\/li>\n
<\/p>\n
- Enter TCS details in the \u201cTaxes Paid\u201d section if not pre-filled.<\/li>\n
\n<\/ul>\n
\nThe system adjusts TCS against tax liability, with any excess refunded.<\/p>\n
Bagri adds, \u201cUsing digital tools with transparent forex spend tracking helps maintain clean documentation and simplifies reconciliation.\u201d<\/p>\n
Recovering missed TCS from previous years<\/strong><\/p>\nUnclaimed TCS can still be recovered if it was recorded under the correct PAN.<\/p>\n
A revised return can be filed if within the revision window.<\/p>\n
If the window has closed, a condonation request may be submitted to the Income Tax Department.<\/p>\n
Bagri emphasises, \u201cWithout TCS being reported under your correct PAN, recovering the credit becomes extremely difficult.\u201d<\/p>\n
Tips to avoid overpaying TCS<\/strong><\/p>\nTo manage TCS efficiently, Bagri and Mundra suggest:<\/em>
\n<\/p>\n
<\/p>\n- Choose the right payment instrument: Credit cards currently attract no TCS; debit or forex cards are subject to the \u20b910 lakh threshold.<\/li>\n
<\/p>\n
- Pay in rupee to Indian operators to stay under the 5% rate.<\/li>\n
<\/p>\n
- Keep PAN updated across all operators.<\/li>\n
<\/p>\n
- Monitor Form 26AS\/AIS regularly and raise discrepancies immediately.<\/li>\n
<\/p>\n
- Maintain transparent records of all flights, hotels, forex transactions, and TCS.<\/li>\n
<\/p>\n
- Treat TCS as a credit, not an expense: It can reduce tax liability or be refunded if liability is zero.<\/li>\n
\n<\/ul>\n<\/div>\n
\n
Source link <\/a><\/p>\n","protected":false},"excerpt":{"rendered":"As more Indians plan overseas holidays, understanding Tax Collected at Source (TCS) on international tour packages has become crucial. While TCS is collected upfront, many travellers remain unaware of how it works, why it appears in Form 26AS, and how to claim it as a credit against their income tax liability. How TCS works? TCS…<\/p>\n","protected":false},"author":1,"featured_media":24674,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[47],"tags":[],"class_list":["post-24673","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-travel"],"_links":{"self":[{"href":"https:\/\/tezgyan.com\/index.php\/wp-json\/wp\/v2\/posts\/24673","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/tezgyan.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/tezgyan.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/tezgyan.com\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/tezgyan.com\/index.php\/wp-json\/wp\/v2\/comments?post=24673"}],"version-history":[{"count":0,"href":"https:\/\/tezgyan.com\/index.php\/wp-json\/wp\/v2\/posts\/24673\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/tezgyan.com\/index.php\/wp-json\/wp\/v2\/media\/24674"}],"wp:attachment":[{"href":"https:\/\/tezgyan.com\/index.php\/wp-json\/wp\/v2\/media?parent=24673"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/tezgyan.com\/index.php\/wp-json\/wp\/v2\/categories?post=24673"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/tezgyan.com\/index.php\/wp-json\/wp\/v2\/tags?post=24673"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}