Finance Minister Nirmala Sitharaman presented the Budget 2026-27, focusing on Make in India, digital growth, and easing costs and compliance for the common man.
Things That Go Down
1. Cancer & Rare Disease Drugs:
Customs duty has been exempted on 17 cancer medicines and 7 drugs for rare diseases, making treatments more affordable.
2. Imported Personal Goods:
Customs duty on goods imported for personal use is reduced from 20% to 10% on electronics and gifts.
3. Overseas Education & Medical Travel:
TCS on remittances under the Liberalised Remittance Scheme for education and medical purposes has been reduced from 5% to 2%.
4. Overseas Tour Packages:
TCS on foreign tour packages is reduced to a flat 2%, making international travel cheaper.
5. Made-in-Electronics:
Duties on critical components for mobile phones, tablets, and microwave ovens are rationalised, reducing costs.
DON'T MISS
6. EV Batteries:
The basic customs duty exemption for lithium-ion cells used in battery storage systems remains in place.
Things That Move Up
1. Futures and Options Trading:
STT on futures is raised from 0.02% to 0.05%, and on options premium from 0.1% to 0.15%, increasing trading costs.
2. Tobacco & Alcohol:
Cigarettes, pan masala, and other tobacco products will be more expensive due to higher excise duty and a new health cess.
3. Imported Luxury Goods:
Premium imported watches and electronics will face higher tariffs.
4. Stock Buybacks:
Buyback proceeds will now be taxed as capital gains, with an additional tax for promoters.
Key Takeaways for the Common Man
1. No Changes in Income Tax Slabs:
Income tax rates for FY 2026-27 remain unchanged; the focus stays on the new regime.
2. New Income Tax Act, 2025:
A simplified law takes effect on April 1, 2026, to make compliance easier.
3. Extended ITR Revision Window:
Taxpayers can now revise their ITR until March 31 of the assessment year with a nominal fee.
4. Interest on Compensation Exempt:
Interest awarded by motor accident claim tribunals is fully tax-exempt.
Smiles or Tears?
Budget 2026 brings relief in daily expenses and taxes, but higher costs for traders and luxury buyers mixed emotions for the common man.
