The latest Union Budget introduces significant changes that will reshape international travel for Indian citizens.
These modifications, spanning tax adjustments and infrastructure investments, have wide-ranging implications for travelers and the tourism industry.
A notable change is the adjustment to the Tax Collected at Source (TCS) on foreign remittances.
The budget proposes allowing individuals to inform employers about TCS payments, which can be factored into Tax Deducted at Source (TDS) calculations on salaries.
While this aims to ease financial burdens by potentially lowering TDS deductions, the impact is not straightforward due to the complexity of the TCS system.
The TCS rates vary significantly based on the purpose of remittance. For instance, self-financed education expenses face a 5% TCS rate above ₹7 lakh, while overseas tour packages are subject to a steep 20% above the same threshold.
This tiered system could influence how individuals plan their international travel and education pursuits, with savvy travelers potentially booking travel components separately to optimize tax liabilities.
The budget's emphasis on enhancing global connectivity aligns with facilitating seamless travel experiences.
Companies specializing in visa and passport services will likely play a crucial role in helping travelers navigate evolving tax regulations and manage global mobility efficiently.
As India's tourism offerings improve, there might be a shift in travel preferences.
More Indians might choose to explore domestic destinations before venturing abroad, while international travelers could find India a more attractive option in the competitive global tourism market.
These changes come as the global travel industry is still recovering from the pandemic's impacts.
The additional layer of financial planning required due to the TCS system could deter some travelers, especially those already cautious about international travel.
Source : https://economictimes.indiatimes.com/nri/visit/how-budget-2024-changes-travel-for-indians-within-the-country-and-abroad/articleshow/112035863.cms
