Budget 2026 relief: Lower TCS on foreign education, medical travel

In a significant move aimed at alleviating financial burdens, the Union Budget 2026 has announced reduced Tax Collected at Source (TCS) rates under the Liberalised Remittance Scheme (LRS). This measure specifically targets expenses related to foreign education, medical treatment, and travel, offering much-needed relief to families and individuals facing high upfront tax costs. The decision reflects the government's commitment to making overseas opportunities more accessible and affordable for Indian citizens. The revised TCS rates are expected to benefit a broad section of the population, particularly students aspiring to study abroad and patients seeking specialized medical care unavailable in India. By lowering these rates, the government intends to encourage global exposure and access to advanced healthcare facilities, which are often hindered by financial constraints. This initiative also aligns with India's broader educational and health policy goals, promoting international collaboration and improved quality of life. Experts suggest that this reduction in TCS could lead to a surge in remittances under the LRS, as more individuals might opt for international education and healthcare services. Additionally, the travel industry anticipates a positive impact, with reduced costs potentially boosting tourism and related sectors. As the new fiscal policies unfold, stakeholders are keenly observing their long-term effects on the economy and individual financial planning.

— Authored by Next24 Live