Finance Minister Nirmala Sitharaman presented the Union Budget 2026 on February 1, bringing relief to the common man regarding various expenses. The government has announced a reduction in taxes and customs duties on several items, including foreign travel packages and household electronics. These changes are intended to lower costs for consumers and support domestic manufacturing.
खबर में पढ़िए: Union Budget 2026: Government offers 100 Crore incentive for Municipal Corporations, REC and PFC shares jump।
How much will Foreign Travel cost now?
Planning a trip abroad has become easier on the pocket with the latest announcements. The government has reduced the Tax Collected at Source (TCS) on foreign tour packages to a flat 2 percent. Earlier, travelers had to pay rates between 5 percent and 20 percent, especially if the expense crossed 7 lakh rupees. The authorities have removed the minimum amount limit, meaning every package booking will now only attract the reduced 2 percent tax, lowering the upfront money required for booking.
Which items have become cheaper in the budget?
The Finance Minister announced cuts in customs duties for various sectors. This move will directly impact the market prices of electronics, medicines, and other daily use items. Here is the list of goods that will cost less:
- Mobile Phones: Customs duty cut on 28 components like batteries, camera modules, and displays.
- Microwave Ovens: Basic Customs Duty removed on specific parts used to make ovens.
- Cancer Medicines: Duty removed on 17 drugs used for cancer treatment.
- Leather Goods: Inputs for leather and footwear exports are now duty-free.
- Solar Panels: Duty reduced on Sodium Antimonate used for solar glass.
What are the new rules for Tax and TCS?
Apart from tour packages, the government has also reduced the TCS on money sent abroad for education and medical purposes to 2 percent. Regarding Income Tax, the slabs remain unchanged, but the Income Tax Act 2025 will be effective from April 1, 2026, to simplify rules. Additionally, NRIs providing capital goods to Indian companies will receive tax relief for five years.
