The Union Budget 2026 announced by Finance minister Nirmala Sitharaman has brought relief in several areas through customs duty cuts and tax rate reductions, while tightening rules and penalties in others. Here’s a simple, visual breakdown 👇
🟢 WHAT GETS CHEAPER 💸⬇️
✈️ Overseas Travel & Education
-
🌍 Overseas tour packages
➝ TCS reduced from 5–20% to just 2% -
🎓 Foreign education expenses
➝ Lower TDS under the Liberalised Remittance Scheme (LRS)
🍷 Raw Materials & Exports
-
🧪 Alcoholic liquor scrap & select minerals
➝ Import duty cut from 5% to 2% -
👞 Shoe upper exports
➝ Duty-free import of inputs allowed
⚡ Green Energy & Transition
-
🔋 Energy transition equipment
➝ Basic Customs Duty (BCD) exempt -
☀️ Solar glass ingredients
➝ BCD exempt -
🪨 Capital goods for critical minerals
➝ BCD exempt
✈️ Manufacturing & Consumer Goods
-
🛫 Aircraft manufacturing components (civilian)
➝ BCD exempt -
🍲 Microwave ovens
➝ BCD exempt -
🧳 Personal-use imports
➝ BCD reduced from 20% to 10%
🏥 Healthcare, Fisheries & Power
-
💊 Drugs for rare diseases & cancer
➝ BCD exempt -
🐟 Fish catch by Indian fishermen (Indian waters)
➝ BCD exempt -
⚛️ Goods for nuclear power projects
➝ BCD exempt
🔴 WHAT GETS COSTLIER 💰⬆️
⚠️ Tax & Compliance
-
📄 Income tax misreporting
➝ Penalty raised to 100% of tax due -
💼 Non-disclosure of movable assets
➝ Penalty now applicable
📈 Stock Market Trading
-
📊 Stock options & futures trading
➝ Securities Transaction Tax (STT) increased from
0.02% ➝ 0.05%
🧠 In Simple Terms
✔️ Budget 2026 makes travel, education, healthcare, green energy, and manufacturing cheaper
❌ But it becomes stricter on tax evasion and more expensive for derivatives traders