Union Budget 2026: Save More on International Travel

The highlight for most travellers is the reduction in Tax Collected at Source (TCS). Along with customs duty simplification, these updates improve liquidity and reduce uncertainty when planning large international expenses.

Major Budget Highlights

• Expenditure Growth: The government plans to spend ₹53.47 lakh crore in 2026–27, up 7.7% from the revised estimate of 2025–26.
• Revenue Growth: Total receipts, excluding borrowings, are estimated at ₹36.51 lakh crore, growing 7.2% compared to last year.
• Fiscal Deficit: The fiscal deficit has improved slightly to 4.3% of GDP, down from 4.4% in the previous year.
• GDP Growth: The government projects a nominal GDP growth rate of 10% in 2026–27.

Key Takeaway: The budget places a strong emphasis on higher spending, controlled deficits, and tax reforms that directly benefit international travellers, with a focus on streamlining global transactions.

What Changed for International Travellers?

1. TCS on Foreign Travel:

TCS on international tour packages, including travel and hotel stays has been reduced from 5% and 20% (depending on the amount) to a flat 2%. This change will:

• - Lower upfront costs when booking expensive international trips.
• - Less money blocked until tax adjustment
• - Provide smoother cash flow for larger travel packages.

For example, on a ₹10 lakh international trip, the TCS would have been ₹50,000 before. Now, it’s only ₹20,000, making it easier to manage your trip expenses.

2. TCS on Education & Medical Remittances:

For remittances above ₹10 lakh for education or medical treatment abroad, TCS has been reduced from 5% to 2%. This makes large payments like tuition fees or hospital bills much easier to handle.

For Example: If you send ₹15 lakh, the TCS earlier was ₹75,000. Now, it’s ₹30,000. With less money blocked upfront, families can manage funds better and plan big payments with greater flexibility.

3. Customs Duty Rationalisation:

Customs duties on items brought back from abroad have been simplified, making arrivals smoother for travellers.

• Smoother imports and fewer surprises at customs.
• Clearer understanding of what you may need to pay
• More predictability when shopping internationally

The changes also support better alignment with domestic manufacturing goals. Frequent flyers can expect clearer declarations and reduced ambiguity when bringing items back into India.

Why This Budget Is Positive for International Travellers

Lower TCS = Less Money Stuck

In the past, travellers often paid high TCS rates and then waited months to adjust or claim refunds. With key categories reduced to 2%, your cash flow is freed up immediately, meaning less money stuck upfront.

If you travel frequently, remit fees, or book international holidays often, this change can make planning and trips smoother. It simplifies your finances by reducing immediate cash outflows.

Want to Save Even More on Forex Transactions?

While the budget makes international payments easier, you can save even more by using the right forex cards. These cards come with low forex fees, great rewards, and perks like lounge access, making your international spends even more rewarding.

Here are some of the best forex cards for frequent travellers:

Card	Forex Fees (Excl. of GST)	Effective Reward Rate	Capping	Notes	Bonus: Lounge Access
Equitas Powermiles	0% - 2%	2.14% - 9%	No Cap	Forex fees and redemption rate varies per tier	Domestic: 2 per Quarter International: 1 per Quarter
HSBC Premier	0.99%	1.84%	No Cap		Domestic: Unlimited International: Unlimited
HDFC Infinia	2%	0.97% + 1%	Up to 2L RPs p.m.	Activate the Global Value Program. Max cashback of ₹1000 per statement.	Domestic: Unlimited International: Unlimited
HDFC DCBM	2%	0.97% + 1%	Up to 75K RP p.m.	Activate the Global Value Program. Max cashback of ₹1000 per statement.	Domestic: Unlimited International: Unlimited
Axis Magnus Burgundy	2%	2.5% - 12%	Up to (Credit Limit + 1.5L) spends	Straight up double returns if transferred to Accor	Domestic: Unlimited International: Unlimited (50K Spends Prev. Quarter)
BOB Eterna	2%	1.39%	Up to 5000 RPs p.m.	Counted towards Milestones as well	Domestic: Unlimited (40K Spends Prev. Quarter)
IDFC WoW	0%	0.50%	No Cap		No Lounge Access
Scapia	0%	0%	N/A	Counted towards Milestones as well	Domestic: Unlimited (20K Spends Prev. Quarter)*
AU Ixigo	0%	0%	N/A		Domestic: 2 per Quarter International: 1 per Year (20K Spends Prev. Quarter)
HSBC TravelOne	3.5%	1.37%	No Cap	SMS "HSBCFX" to 575750 for 3.5% Cashback for forex fees. Valid till 30 June 2026	Domestic: 2 per Quarter International: 1 per Quarter

*Total 20K (Visa + Rupay) spend criteria will be applied from 27th Feb 2026, till then 10K via Visa Scapia and 15K Rupay Scapia

Plan Smarter for Your Next International Trip!

The Union Budget 2026–27 is a win for international travellers with key reforms:

• - TCS reduced to 2% on overseas tour packages
• - TCS reduced to 2% for education/medical remittances above ₹10 lakh
• - Customs duty rationalisation for more predictable international purchases

With the right credit card for forex, you can also maximise your rewards, save on forex fees, and even enjoy lounge access globally. If you travel frequently, these updates and card choices will make your travel experience much more rewarding and cost-effective. In many of these cases, a credit card manager app can be helpful in planning your international trip in advance.

At SaveSage, we help you optimise your credit card reward points , stay updated on important changes, and offer expert consultation so your international travel and spending become easier to plan.