Tax Collected at Source (TCS) is a tax levied by the Indian government on certain transactions at the time of sale. Here's how it affects overseas spending using credit cards:

• TCS is applicable on the purchase of foreign currency and overseas remittances.
• When using a credit card for overseas spending, TCS is collected by the bank or financial institution at the time of payment.
• The TCS rate for overseas spending is currently 5% of the total amount spent.
• This tax is collected to monitor foreign currency transactions and maintain transparency in the system.
• TCS is deducted at the source, meaning it is collected by the bank or institution before the funds are remitted for payment to the overseas merchant.

Overall, TCS on overseas spending using credit cards adds an additional cost to the transaction, which needs to be taken into account when planning for travel expenses.