Forex cards need not mean TCS

NO TCS ON UP TO ₹10 LAKH FOREX SPEND

- Sudarshan Motwani

EACH YEAR, MILLIONS of Indian travellers step out into the world—but end up taking outdated travel money habits with them. These habits cost them far more than they realise. Here are the four most expensive forex myths Indians believe and what they should do instead.

Myth #1: Forex means 20% TCS
Truth: Most travellers don't pay tax collected at source (TCS) and even if you do, it's reclaimable. For foreign exchange spends up to ₹10 lakh in a financial year, there's no TCS. Beyond that, the rate is purpose-specific—5% for education or medical expenses. And any TCS paid can be adjusted against your income tax when filing returns.

Smart Move: Don't let tax myths deter you. Forex cards are efficient, and also tax smart.