Centre withdraws TCS on tour package to NRIs visiting India

The CBDT said it had received complaints from domestic tour operators who were having trouble collecting tax from non-resident visitors to India that were booked abroad tour packages.

Centre withdraws TCS on tour package to NRIs visiting India
Photo by Blake Guidry / Unsplash

The Indian government said on Thursday that domestic tour operators are no longer obligated to collect tax on the sale of international vacation packages to non-resident individuals visiting India, which is seen as a huge relief.

The provision of Tax Collected at Source of 5 percent under section 206C(1G) of the Income Tax Act, 1961 has been modified by the Central Board of Direct Taxes (CBDT).