PURCHASE of an international travel ticket, hotel accommodation or any other expenditure of similar nature — at least two of these expenses would qualify as overseas tour package under the Liberalised Remittance Scheme and hence, attract tax collected at source (TCS), the Central Board of Direct Taxes (CBDT) under Ministry of Finance clarified in a circular issued Friday.
The government has also clarified about the eligible expenses for medical and education, keeping incidental expenses for both categories within the ambit of LRS as against the earlier expectation of a separate tax treatment.