The Indian government has introduced significant changes to the Tax Collected at Source (TCS) rates under the new Income-Tax Act 2025, which takes effect on April 1, 2026. The TCS rate for foreign travel packages will now be a flat 2%, a reduction from the previous 5% for amounts up to ₹10 lakh (approximately $12,000 USD) and 20% for amounts exceeding this threshold. Similarly, TCS on remittances for education and medical treatment abroad has also been lowered from 5% to 2%. These changes aim to alleviate the upfront tax burden on individuals while maintaining transparency for tax authorities. Additionally, the government has introduced new mandatory disclosures in tax audits, replacing the previous Form 3CD with Form 26, which now requires detailed reporting of TCS transactions. The filing window for TCS correction statements has been reduced to two years from the end of the financial year in which the original statement was due. These revisions reflect the government's commitment to streamline tax processes and enhance compliance.