Union Finance Minister Nirmala Sitharaman on Sunday announced in Union Budget 2026-27 that select outward remittances will get cheaper on overseas tour packages, education, medical remittances cut
Share
Budget 2026-27 unveils Customs reforms for ease of business
NEW DELHI — Union Finance Minister Nirmala Sitharaman on Sunday announced in Union Budget 2026-27 that select outward remittances will get cheaper with Tax Collected at Source (TCS) on overseas tour packages and education and medical remittances cut to 2 per cent.
Earlier, overseas tour packages used to attract TCS at 5–20 per cent, while overseas education and medical remittances (LRS) were taxed 5 per cent at source.
The Budget 2026-27 cuts or exempts basic customs duties (BCD) and transaction charges on several items, including energy‑transition equipment, solar glass inputs, capital goods for critical minerals and lithium‑ion cells, civilian aircraft MRO components, rare and cancer drugs, and certain textile and leather inputs.
Fish caught by Indian fishermen, and nuclear power goods have also been exempted from BCD. On microwave ovens and personal-use imports, BCD has been reduced from 20 per cent to 10 per cent.
Also read: Cabinet approves Union Budget 2026-27; Nirmala Sitharaman meets President ahead of 9th record speech
Budget ensures ease of living for taxpayers, new Income Tax Act from April 1
Further, the Budget reduced import duties on graphite, quartz, coal, sand, silicon, rare-earth metals and metal oxide. It extended export realisation periods for some textile and leather shipments to one year.
The basic customs duty on makhana and roasted nuts was cut to 30 per cent from 150 per cent, while duties on almonds and walnuts were trimmed. The basic customs duty on seeds and spores for sowing was halved to 15 per cent from 30 per cent. Wet blue leather will enjoy zero import duty.
On petroleum crude, a 5 per cent ad valorem levy was changed to a flat Rs 1 per tonne charge.
Penalties for income tax misreporting were hiked to 100 per cent of the tax amount plus tax and interest. Futures and options trading (F&O) will become more expensive as the securities transaction tax on stock options was raised to 0.15 per cent, and STT on futures trading was increased to 0.05 per cent from 0.02 per cent.
Tax collection at source (TCS) rates were increased from 1 per cent to 2 per cent on alcoholic liquor, minerals, and scrap sales. Chewing tobacco products, including zarda and gutkha, saw the National Calamity Contingent Duty (NCCD) rise to 60 per cent from 25 per cent.
Budget rests on three pillars -- faster growth, inclusive development and structural reform, the Finance Minister said, adding that its broader sankalp remains centred on the poor and disadvantaged.
Budget 2026-27 unveils Customs reforms for ease of business
Finance Minister Nirmala Sitharaman, presenting the Budget 2026-27 in the Parliament on Sunday, announced that the government will roll out a Customs Integrated System (CIS) in two years as a single, integrated and scalable platform for all customs processes.
The Finance Minister also said that the utilisation of non-intrusive scanning with advanced imaging and AI technology for risk assessment will be expanded in a phased manner, with the objective of scanning every container across all the major ports.
She further said that approvals required for cargo clearance from various government agencies will be seamlessly processed through a single and interconnected digital window by the end of the financial year. She said that processes involved in the clearance of food, drugs, plant, animal and wildlife products, accounting for around 70 per cent of interdicted cargo, will be operationalised on this system by April 2026.
The Union Minister further said that for goods not having any compliance requirement, clearance will be done by Customs immediately after online registration is completed by the importer, subject to the payment of duty.
She also announced various measures to support Indian fishermen to fully harness the economic value of marine resources beyond the territorial waters. These measures include making free of duty, the fish caught by an Indian fishing vessel in the Exclusive Economic Zone (EEZ) or on the High Seas, while the landing of such fish on foreign ports will be treated as an export of goods.
She also said that safeguards will be put in place to prevent misuse during fish catch, transit, and transhipment.
The Finance Minister further announced a complete removal of the current value cap of INR 10 lakh per consignment on courier exports to support the aspirations of India’s small businesses, artisans, and start-ups to access global markets through e-commerce. In addition, handling of rejected and returned consignments will be improved with the effective use of technology for identifying such consignments, she added.
The Finance Minister further said that there are honest taxpayers who are willing to settle disputes by paying all their dues, but they get deterred due to the negative connotation associated with the penalty. They will now be able to close cases by paying an additional amount in lieu of penalty, she added.