New Delhi, Feb 1 (NationPress) In a significant announcement made on Sunday, Union Finance Minister Nirmala Sitharaman introduced the Union Budget 2026-27, which will lead to reduced costs for specific outward remittances. The Tax Collected at Source (TCS) for overseas tour packages, as well as education and medical remittances, has been decreased to 2 percent.

Previously, TCS on overseas tour packages ranged from 5–20 percent, while remittances for overseas education and medical purposes faced a 5 percent tax at source.

The 2026-27 Budget also includes reductions or exemptions on basic customs duties (BCD) and transaction fees for various items. These include energy-transition equipment, solar glass inputs, capital goods for critical minerals, lithium-ion cells, civilian aircraft MRO components, rare and cancer drugs, along with specific textile and leather inputs.

Moreover, fish caught by Indian fishermen and goods related to nuclear power are now exempt from BCD. The BCD on microwave ovens and personal-use imports has been slashed from 20 percent to 10 percent.

In addition, import duties on graphite, quartz, coal, sand, silicon, rare-earth metals, and metal oxides have been reduced. The export realization periods for certain textile and leather shipments have been extended to one year.

The basic customs duty on makhana and roasted nuts has been lowered to 30 percent from 150 percent, while duties on almonds and walnuts have also seen a reduction. Additionally, the duty on seeds and spores for sowing has been halved to 15 percent from 30 percent, and there is now zero import duty on wet blue leather.

For petroleum crude, the previous 5 percent ad valorem levy has been switched to a flat charge of Rs 1 per tonne.

Penalties for misreporting income tax have increased to 100 percent of the tax amount, plus tax and interest. Futures and options trading (F&O) will incur higher costs as the securities transaction tax on stock options has risen to 0.15 percent, and the STT on futures trading increased from 0.02 percent to 0.05 percent.

The TCS rates have gone up from 1 percent to 2 percent on alcoholic beverages, minerals, and scrap sales. Furthermore, the National Calamity Contingent Duty (NCCD) on chewing tobacco products, including jarda and gutkha, has surged to 60 percent from 25 percent.

The Budget is built on three key pillars: faster growth, inclusive development, and structural reform, with the finance minister emphasizing that its broader vision remains focused on the underprivileged.