Neha Nagar and Aakanksha Monga Share Tips on TCS: How To Save on Foreign Travels

The TCS tax rules are changed starting Oct 1st 2023 which is making foreign travel cost you more. Earlier, the foreign travel of above Rs.7L would have 5% TCS, now after the new TCS rules you'll have to shed 20% TCS on foreign travels above Rs.7L. Popular finance content creator Neha Nagar and travel content creator,  Aakanksha Monga have joined hands to share a few tips on how you can save on your Rs.7L and above foreign travels. The duo will make you understand the math and share with you some amazing finance and travel tips that'll help you save huge on TCS.

Understand the Math Below

- For a Rs. 9L family trip, TCS could be Rs. 75K under new rules, up from Rs. 45K!

How to Save TCS: Stay ahead With These Tips

Split Costs: Allocate trip expenses among family to keep each person's cost below Rs. 7L.
Book Wisely: A ‘tour package' combines costs and triggers TCS. Book flights and hotels separately to manage expenses within the TCS threshold.
Credit Savvy: International credit cards might not incur TCS—double-check with your bank.
Claim Your Tax Back: If you've paid TCS, you can claim it as a tax refund. Just submit your travel documents and TCS receipts when filing your tax returns.

To illustrate:

Old TCS: 5% of Rs. 9L = Rs. 45K
New TCS: 5% on Rs. 7L + 20% on remaining Rs. 2L = Rs. 75K

Tour Package vs Separate Booking:

Tour Package: All travel services billed together, often exceeding the Rs. 7L limit.
Separate Booking: Each service is billed individually, easier to keep under Rs. 7L.

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Hope all the above travel and finance tips can help you save on your foreign travel vacation. Travel smart, not hard!