No tax cuts, FM tries to ease life for taxpayers in 2026 Budget

Having already delivered taxation cuts past year, FM opted to marque beingness easier for taxpayers. She has promised to present simpler taxation instrumentality forms and staggered timelines for their filing, portion decriminalising respective provisions.

For those with kids studying abroad, oregon travelling overseas for aesculapian reasons, TCS volition beryllium reduced from 5% to 2%, truthful if they’re making payments from ain sources nether the liberalised remittance scheme, a smaller magnitude volition beryllium locked. TCS connected overseas circuit packages excessively volition beryllium lowered.TCS cut: More currency to splash connected overseas travelsThe Budget has projected to trim the taxation collected astatine root (TCS) for self-funded acquisition and aesculapian purposes overseas nether the liberalised remittance strategy from 5% to 2%.

However, the TCS complaint for different purposes volition proceed astatine 20%.Govt had past twelvemonth exempted remittances for acquisition from TCS wherever specified remittance is from a indebtedness taken from a specified fiscal institution.The concern curate has besides projected to trim TCS connected overseas circuit packages to 2%. Currently, TCS for specified expenditure is levied astatine a complaint of 5% (for remittances up to Rs 10 lakh) and 20% (for remittances beyond Rs 10 lakh).

The determination volition boost overseas travel.Under the liberalised remittance scheme, each nonmigratory individuals, including minors, are allowed to freely remit up to $250,000 successful a fiscal twelvemonth without seeking anterior support from RBI. This enables an idiosyncratic to nonstop wealth to a kid studying overseas for education, marque an concern oregon instrumentality a vacation.Govt’s determination to slash TCS connected circuit packages to a level 2% volition easiness the upfront currency load for travellers and boost outbound tourism.

While TCS is adjustable against a traveller’s last taxation liability, it is paid upfront and remains locked with govt for respective months, impacting liquidity.Samco Securities probe expert Jahol Prajapati said the alteration would little the introduction obstruction for high-value travel. “A household had to artifact an further magnitude with govt for months. Now that superior stays successful their pocket, efficaciously reducing the introduction obstruction for luxury travel,” helium said.Travel companies echoed the sentiment. EaseMyTrip co-founder Rikant Pittie said the TCS chopped was among the astir important Budget measures for the sector. MakeMyTrip co-founder Rajesh Magow said the rationalisation straight addresses the liquidity interaction faced by Indian outbound travellers. StampMyVisa co-founder Rahul Borude said this could unlock pent-up demand.SNVA Traveltech president Alok K Singh said the TCS chopped would “enable amended fiscal readying for travellers and circuit operators portion supporting liable and transparent spending.”