For some time now, Indian people have started liking to travel abroad a lot. Whenever they get time for a few days, Indians go to visit countries like Thailand, London, America etc.
Many people keep planning to travel abroad with friends. July is one such month of the year when many people plan to travel abroad with their families as children also have holidays in July.
But do you know why travelling abroad is going to be expensive for tourists from July? If you also want to know why travelling abroad from July can be expensive, then you must read this article.
Why would travelling abroad be expensive?
For your information, let us tell you that during the budget 2023, Union Finance Minister Nirmala Sitharaman had proposed to increase the tax collected at source i.e. TCS to 20 percent.
TCS was earlier 5 percent, but it will be increased to 20 percent from July 2023. This 20 percent TCS rule will also apply to international transactions or credit cards.
Suppose you want to convert Rs 5 lakh to US Dollars for travelling in countries like Thailand, America, London etc. then the bank will deduct 20% TCS on Rs 5 lakh, which will be Rs 1 lakh. However, this amount can be claimed through an income tax return.
Will tourists be affected?
It is being said that after this new rule, the number of people travelling abroad is very less. However, some people believe that if your money is deducted as tax, then after some time you can get your money by filing an income tax return. In such a situation, the dream of travelling abroad will also be fulfilled and full money will also be received. Must do these things in Thailand during summer vacation
Tour packages may be affected
When it comes to travelling 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 of TCS will be deducted. However, there may be a difference in the amount if you book tour packages from domestic and foreign sites.
