Highlights of Union Budget 2026-27

The 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 pc and 0.15 pc * TCS on sale of overseas tour packages slashed to 2 pc * TCS on overseas education, medical expenses under LRS (Liberalised Remittance Scheme) cut to 2 pc * 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 * Share buyback for all types of shareholders to be taxed as capital gains. However, promoters will pay an additional buyback tax. * Tax holiday up to 2047 for any foreign company for providing services globally from data centres in India * Introduction of a one-time 6-month foreign asset disclosure scheme below a certain size for small taxpayers *Immunity from prosecution with retrospective effect from October 1, 2024, for non-disclosure of non-immovable foreign assets with aggregate value less than Rs 20 lakh * Fiscal deficit pegged at 4.3 pc of GDP in FY27, lower than 4.4 per cent in FY26 * Debt-to-GDP to be cut to 55.6 pc from 56.1 pc 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 pc 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 pc 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.