Union Budget 2026-27 introduces a clear reshuffling of prices across goods, services, and financial activities.
Finance Minister Nirmala Sitharaman announced several tax reductions alongside selective increases, shaping what becomes cheaper and what costs more for consumers and businesses.
A key relief comes on outward remittances. The Budget lowers the tax collected at Source on overseas tour packages to 2 per cent. It also reduces TCS on education and medical remittances under the Liberalised Remittance Scheme to 2 per cent.
Earlier, overseas tour packages attracted TCS between 5 and 20 per cent.
The government taxed education and medical remittances at 5 per cent. The cut reduces upfront costs for families spending abroad.
On the trade front, the government cut or removed basic customs duty and transaction charges on a wide range of inputs.
These include energy-transition equipment, solar glass materials, capital goods for critical minerals and lithium-ion cells, and components used in civilian aircraft maintenance, repair, and overhaul.
Several rare and cancer medicines also received duty relief, along with select textile and leather inputs.
Import Tariffs Rationalised
The Budget exempted fish caught by Indian fishermen and nuclear power equipment from basic customs duty. Import duty on microwave ovens and personal-use imports dropped to 10 per cent from 20 per cent.
The government reduced duties on graphite, quartz, coal, sand, silicon, rare earth metals, and metal oxides.
The government extended export realisation timelines for certain textile and leather shipments to one year.
Agricultural and food items saw notable changes. Basic customs duty on makhana and roasted nuts fell sharply to 30 per cent from 150 per cent.
The government reduced duties on almonds and walnuts. It cut import duty on seeds and spores for sowing to 15 per cent from 30 per cent and removed import duty on wet blue leather.
In petroleum taxation, the government replaced the 5 per cent ad valorem duty on crude oil with a flat charge of Rs 1 per tonne.
On the costlier side, penalties for income tax misreporting increased to 100 per cent of the tax due, along with tax and interest.
Futures and options trading became more expensive. Securities transaction tax on stock options rose to 0.15 per cent, while STT on futures increased to 0.05 per cent from 0.02 per cent.
TCS rates on alcoholic liquor, minerals, and scrap sales doubled to 2 per cent.
The government sharply increased the National Calamity Contingent Duty on chewing tobacco products, including gutkha and jarda. It raised the levy to 60 per cent from 25 per cent.
The finance minister said the Budget rests on three pillars: faster growth, inclusive development, and structural reform. She added that it keeps a broader focus on the poor and disadvantaged.
Also Read: Union Budget 2026: India Maps Rare Earth Mineral Corridors To Curb China Dependence
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