Union Budget 2026: What’s getting costlier, what’s getting cheaper for you

With Finance Minister Nirmala Sitharaman presenting her ninth consecutive Union Budget several changes will directly impact household expenses and consumer choicesFollow the live updates of Union Budget 2026 with realtime coverage of major announcements tax reforms economic priorities and policy decisionsUnion Budget 2026 What gets cheaperOverseas tour packages as TCS has been reduced from 5ndash20 per cent to 2 per centForeign education costs with lower TDS under the Liberalised Remittance Scheme LRSAlcoholic liquor scrap and select minerals following a duty cut from 5 per cent to 2 per centShoe upper exports with dutyfree imports permittedEnergy transition equipment with exemption from basic customs duty BCDSolar glass manufacturing inputs with BCD exemptionCapital goods used for critical mineral production with BCD exemptionComponents and parts for civilian aircraft manufacturing exempted from BCDMicrowave ovens with full BCD exemptionPersonaluse imports as BCD is reduced from 20 per cent to 10 per centDrugs used for rare diseases and cancer with BCD exemptionFish caught by Indian fishermen in Indian waters exempt from BCDGoods imported for nuclear power projects exempt from BCDCancer drugsLeather goodsCameraTV equipmentImports of goods for nuclear power till 2023video games manufacturing partsFootwearUnion Budget 2026 What gets costlierIncome tax misreporting now attracting a penalty equal to 100 per cent of the tax amountNondisclosure of movable assets which will now invite penaltiesStock options and futures trading with Securities Transaction Tax increased from 002 per cent to 005 per centldquoSinrdquo goods such as cigarettes and luxury importsCoffee and vending machinesCoalUnion Budget 2026 Income tax law comes into force from April 1 says Nirmala SitharamanThe FM on Sunday announced that the Income Tax Act 2025 will come into force from April 1 marking a major overhaul of Indiarsquos direct tax framework She said the accompanying rules and redesigned income tax return ITR forms will be notified shortly to give taxpayers adequate time to familiarise themselves with the new systemSimplified rules and ITR forms to be notified soonSpeaking in the Lok Sabha during her Union Budget 2026 address Sitharaman said the new law will replace the sixdecadeold Income Tax Act of 1961 with all changes announced in the current Budget being incorporated into the fresh legislation ldquoThis direct tax code was completed in record time and the Income Tax Act 2025 will take effect from April 1 2026 The simplified rules and forms will be notified soonrdquo she saidRevamped ITRs designed for easier taxpayer complianceThe Finance Minister emphasised that the revamped ITR forms have been redesigned with the ordinary taxpayer in mind enabling easier compliance without procedural complexity According to her the reform is focused on clarity and simplicity rather than altering tax ratesRevenueneutral law cuts sections by nearly 50 per centShe clarified that the new Income Tax Act is revenueneutral with no change in existing tax slabs or rates Instead it aims to simplify the law remove ambiguities and significantly reduce litigation by making provisions easier to understand Notably the legislation cuts down the overall text and number of sections by nearly 50 per cent compared to the 1961 ActSingle lsquotax yearrsquo concept late filers allowed TDS refundsOne of the key structural changes introduced under the new law is the simplification of the tax timeline The longstanding distinction between the ldquoprevious yearrdquo and the ldquoassessment yearrdquo has been removed and replaced with a single ldquotax yearrdquo concept making compliance more straightforward for taxpayersIn another taxpayerfriendly move Sitharaman said the new framework will allow individuals to claim refunds of tax deducted at source TDS even if income tax returns are filed after the due date without attracting any penal chargesThe Finance Minister said these reforms are intended to make Indiarsquos direct tax system more transparent predictable and citizencentric while also improving ease of compliance and reducing disputes between taxpayers and the tax administration