Budget 2026: Important highlights; How it Affects General Public

Budget 2026: For the 9th time in a row, Finance Minister Nirmala Sitharaman became the first finance minister to present the budget. The Government changed customs and excise taxes in the budget to encourage homegrown production, limit imports, and increase demand. As a result, tax reductions will make some goods more affordable, while price increases may occur for others. Let’s examine the highlights.

Budget 2026: Important highlights

• The 6-decade old tax code will be replaced on 1st April 2026 by the new Income Tax Act, 2025.
• The income tax ID return filing deadline has been moved from December 31st to March 31st, provided a small fee is paid.
• Interest granted to a person by the motor accident claim tribunal will not be subject to income tax. Additionally, any applicable TDS will be eliminated.
• TCS’s overseas tour program package sales rate was lowered from 5% and 20% to 2%.
• Under the Liberalisation Remittance scheme (LRS) that TCS rate for medical and educational expenses was lowered from 5% to 2%.
• 17 medications, including cancer treatments, to reduce costs. Sitharaman also suggested exempting medications from import taxes for 7 additional uncommon illnesses.
• Institute of requiring TAN, it is suggested that the TDS be deducted and remitted through the resident buyer’s PAN-based challan when a non resident sellz real estate
• For minor taxpayers, such as students and NRIs who have migrated, a one-time, 6-month foreign asset declaration plan was proposed. It would require them to reveal income or assets under a specific threshold.

What impact would the budget 2026 have on the average person?

Proposals for the 2026 budget will have both direct and indirect effects on the average person. Announcements about income tax, welfare programs, and educational policies have an immediate and noticeable effect. Plans for public services and infrastructure also have an impact on day-to-day living. The average person will also be impacted by enhanced facilities, increased rural income, and eventually, employment chances.