Highlights of Union Budget 2026-27

Following are the highlights of the Union Budget 2026-27 presented by Finance Minister Nirmala Sitharaman in the Lok Sabha.

• No change in Income Tax rates

• Securities Transaction Tax (STT) raised on futures and options (F&O) to 0.05% and 0.15%

• TCS on sale of overseas tour packages slashed to 2%

• TCS on overseas education, medical expenses under LRS (Liberalised Remittance Scheme) cut to 2%

• New Income Tax Act, 2025, to be implemented from April 1; rules, forms to come soon

• ITR filing date for non-audit businesses extended by a month till August 31

• Tax holiday up to 2047 for any foreign company for providing services globally from data centres in India

• Fiscal deficit pegged at 4.3% of GDP in FY27, lower than 4.4 per cent in FY26

• Debt-to-GDP to be cut to 55.6% from 56.1% in the current fiscal year

• Total Budget size at Rs 53.5 lakh crore

• Govt capital expenditure hiked to Rs 12.2 lakh crore from Rs 11.11 lakh crore in FY26

• Rs 1.4 lakh crore to be devolved to states as tax share

• Net tax receipts estimated at Rs 28.7 lakh crore

• Gross market borrowings estimated at Rs 17.2 lakh crore

• Budget focuses on 3 Kartavyas -- accelerating growth, fulfilling aspirations, and Sabka Sath, Sabka Vikas

• Reform express on track, over 350 reforms rolled out

• Proposes Rs 10,000 crore SME Growth fund to create future champions

• Trust-based systems for Customs, advance ruling validity period extended to 5 years

• High-level committee to increase the services sector contribution to 10% by 2047

• Minimum Alternate Tax (MAT) is proposed to be made the final tax

• Customs Integrated System (CIS) to be rolled out in 2 years

• Exempts basic customs duty on 17 drugs for cancer patients

• Single and interconnected digital window for cargo clearance approvals

• Single-system clearance for food, drugs, plant, animal, and wildlife products covering 70% of interdicted cargo to go live by April 2026

• Tariff rate on all dutiable goods imported for personal use to be reduced from 20 pc to 10 pc

• Basic customs duty exemption on components and parts used in manufacturing civilian, training, and other aircraft

• Duty-free personal import of drugs and food for 7 more rare diseases

• Five tourism destinations to be created across the five Purvodaya states

• 15 archaeological sites, including Lothal, Dholavira, Rakhigarhi, Adichanallur, Sarnath, Hastinapur, and Leh Palace, to be developed as vibrant, experiential cultural destinations

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