Finance Minister Nirmala Sitharaman presented the Union Budget 2026-27 on February 1, bringing relief to specific groups of taxpayers. While the general income tax slabs remain the same as before, the government has announced significant cuts in taxes collected on foreign payments. People planning holidays abroad or sending money for education will now pay less tax at the source.
एक और जरूरी खबर: Union Budget 2026: Govt announces 100% penalty on misreporting income, TCS reduced on foreign tours।
Foreign Travel and Education Costs Reduced
The government has reduced the Tax Collected at Source (TCS) for overseas tour packages. Earlier, travelers had to pay 5 percent tax, and for amounts above Rs 7 lakh, the rate was 20 percent. Now, this rate has been slashed to a flat 2 percent for everyone. This change applies to all amounts without any limit, making foreign trips more affordable.
Students studying abroad and patients seeking medical treatment outside India also get a benefit. Remittances made for education and medical purposes under the Liberalized Remittance Scheme will now attract only 2 percent TCS instead of the previous 5 percent.
Relief for Accident Victims and New Rules
A major relief has been announced for victims of road accidents. The interest money received from the Motor Accident Claims Tribunal (MACT) is now fully exempt from income tax. Previously, tax was deducted from this interest, but now the government has abolished that rule to help victims and their families.
Other Important Updates:
- Hiring Services: Companies hiring manpower will now deduct a fixed TDS of 1 percent or 2 percent to avoid confusion.
- ITR Revision: You can now file a revised income tax return up to March 31 instead of December 31.
- New Act: The New Income Tax Act 2025 will officially start from April 1, 2026.
