Budget: Domestic tourism gets a fillip, overseas travel set to get costlier

Travel industry expressed mixed feelings about the budget as some of the demands for tax concessions or industry status for the sector too were not addressed in the budget

The domestic tourism sector, which suffered a major setback during the pandemic, got a push from the Union Budget, with Finance Minister Nirmala Sitharaman proposing integrated development of 50 destinations. Overseas trips, though, are set to get dearer with the government hiking the rate of tax collected at source (TCS) to 20 per cent from 5 per cent. 
 
Income tax is collected and paid on remittance made for a foreign tour, hotel booking or hiring a car overseas, even if purchased individually. International air tickets purchased directly by travellers will not attract TCS.
 
The Finance Minister has provided