Union Budget 2026: Union Finance Minister Nirmala Sitharaman has presented the Union Budget 2026-27 today. This was his ninth consecutive budget and only the second time in history that the budget was presented on a Sunday. One of the announcements beneficial for many taxpayers, the decision is special for both families and students. Let us tell you that due to low taxes, studies, medical treatment and travel abroad have now become much cheaper. Let us know how much tax reduction the government has done.

Big relief on education and medical treatment abroad

The most important announcement is related to those Indians who send money abroad for education and medical treatment. The government has reduced TCS from 5% to 2% under the Liberalized Remittance Scheme. This means direct tax relief of 3%. This will significantly reduce the financial burden on students studying abroad and patients undergoing treatment abroad. Earlier, families had to block a large amount as tax while sending money. However, this could be adjusted later while filing the return. But now this tax has been reduced.

Foreign travel also became cheaper

Foreign travel has also come as a big relief. TCS on international tour packages has been reduced to 2% from the earlier 5% and in some cases 20%. The important thing is that the government has removed the condition of minimum limit. That means now, whatever be the price of the package, the lower rate will be applicable. According to the budget announcement, TCS on foreign travel was reduced to 2%, TCS on education abroad was reduced from 5% to 2% and TCS on medical treatment abroad was reduced from 5% to 2%.

More time to file revised income tax return

Another major relief for taxpayers is the extension of the deadline for filing revised income tax returns. Earlier the revised return had to be filed by 31 December. But now it has been extended to March 31. This means that now tax payers will get additional time of 3 months to rectify the mistakes or shortcomings. Although a nominal fee will be charged, this step will prove to be a second opportunity for compliance.

Easy rules for sending money abroad

Under the Liberalized Remittance Scheme, sending money for studies abroad or health care has become easier and cheaper with low TCS. This step will prove helpful for middle class families who depend on their savings or loans for studying abroad or for necessary medical procedures. The lower initial tax will also significantly improve liquidity as households will no longer have to wait for months to claim refunds.

Also read: From cheap medicines for sugar and cancer to biopharma hub, know what the health sector got in the budget?