Budget 2026-27: Key Tax Changes and Economic Measures

The Indian government has announced several changes in the Budget 2026-27 to make life easier for taxpayers.

They have reduced the tax collected at source (TCS) on overseas tour packages, education, and medical treatment to 2%.

This means people will pay less tax when they travel abroad, study, or get medical treatment overseas.

The government has also lowered the import duty on personal-use items from 20% to 10%, making imported goods cheaper.

For businesses, especially those in seafood, defence, and clean energy, the government has made it easier and cheaper to import necessary materials.

They have also exempted non-residents from paying Minimum Alternate Tax (MAT) if they pay tax on a presumptive basis.

The government has also increased the Securities Transaction Tax (STT) on futures and options to curb speculative trading.

Additionally, the government has increased the outlay for the Electronics Components Manufacturing Scheme (ECMS) to ₹40,000 crore and launched ISM 2.0 to expand the semiconductor sector.

The Budget also clarifies the TDS provisions for contract work, resolving longstanding ambiguities.

These changes aim to make foreign travel and education more affordable, support businesses, boost the economy, and promote the electronics and semiconductor sectors.