The TCS Line on Your Umrah Quote, Explained

If you have received a quote for an Umrah package from India, you have probably seen a line marked "TCS". It can look like an extra charge. It is not a fee to the tour operator and it is not lost money: it is tax collected in advance against your PAN, which you can claim back as a credit when you file your income-tax return.

This guide explains what TCS is, why it appears on an Umrah quote, and how the credit works. The rate and rules below are as of the date shown at the top of this page. It is general information, not tax advice for your situation.

What TCS is

TCS stands for tax collected at source. For certain transactions, Indian tax law asks the seller to collect a small amount of tax from the buyer at the time of sale and deposit it with the government in the buyer's name, against their PAN.

For you, the buyer, it works like an advance payment of income tax. It does not change how much income tax you owe for the year. It is counted towards it.

The rate for overseas tour packages (as of 1 April 2026): the Finance Act, 2026 set TCS on overseas tour programme packages at a flat 2% of the amount, with no threshold. It applies from the first rupee.

Before 1 April 2026 the rate was 5%, rising to 20% above a threshold. If you see older articles quoting 5% or 20%, they describe the previous rules.

Why it appears on your Umrah quote

An Umrah package from India usually combines international flights with hotel stays in Makkah and Madinah, and often transfers and visa help. TCS applies to overseas tour programme packages, and an Umrah package of this kind is sold as one, so the seller collects TCS on it.

In practice:

• Your quote or invoice shows the package price and the TCS separately. The TCS line should be 2% of the package amount.
• The operator needs your PAN, because the TCS is deposited against it. Give your correct PAN when you book.
• If you book parts of your trip separately, for example flights and hotels on your own, ask a tax professional whether and how TCS applies to you.
• Paying for family members. Ask your operator whose PAN the TCS will be collected against, and ask your accountant how the credit works for your family.

How it is credited in your ITR

The money is not gone. Here is how you get the credit:

1. The operator deposits the TCS with the government against your PAN.
2. It appears in your tax records, in your Form 26AS and Annual Information Statement (AIS), on the income-tax e-filing portal. The operator should also give you a TCS certificate.
3. When you file your income-tax return for that financial year, the TCS is counted as tax already paid.
4. The result: it reduces the tax you still have to pay. If you have paid more tax than you owe for the year, the extra is refunded.

A few practical tips:

• Keep the invoice showing the TCS amount, and the TCS certificate.
• Check your Form 26AS / AIS a few months after you pay, to make sure the TCS shows against your PAN. If it does not, ask the operator.
• Remember the timing. The credit comes when you file your return for the year you paid, not straight away, so plan your cash flow for the trip with the TCS included.
• If you do not usually file a return, ask a tax professional how to claim the credit.

Because everyone's tax position is different, a chartered accountant or tax professional can tell you exactly how the credit affects you.

For a full picture of what an Umrah costs, see our Umrah cost breakdown.