Focus on tour operators to manage tax at source on overseas travel

Travellers whose incomes are below the taxable limit will have to file a return to claim the refund on this tax

Budget 2020 proposed many amendments to tax laws that impact individual taxpayers. While some are favourable to taxpayers, others impose more taxes or obligations. Out of the many proposals, one that has caught the attention of taxpayers is the new provision regarding tax collected at source (TCS) on overseas tour packages.

Most taxpayers are familiar with the concept of tax deducted at source (TDS), which refers to the payer of an income or a buyer of a service, withholding a certain percentage of that income or fees and depositing it with the tax authorities as TDS. TDS currently applies to a