Union Budget 2026: What’s in for the Common People in Budget 2026?

The Budget aims to reduce compliance burdens and customs rates on overseas remittances to provide relief to the middle class.

Union Budget 2026 was announced on February 1 by Finance Minister NirmalaSitharaman in her consecutive 9th consecutive budget speech. The new Budget seems not to have cheered up the average middle-class taxpayer, as there isn’t any direct relief through restructured tax slabs, but it offered scope for growth to the middle class and small investors through various measures.

Union Budget 2026 for the common people.

There is no new tax relief for the salaried class this year, with the government opting for policy continuity. The Budget retains the tax regime under which annual income up to ₹12 lakh will remain tax-free. Adding ₹75,000 standard deduction, the tax-free income rises to ₹12,75,000. This year there is no new change in the tax slabs. The Budget aims to reduce compliance burdens and customs rates on overseas remittances to provide relief to the middle class. The focus is also on protecting long-term household savings while improving the overall taxpayer experience.

More on the Union Budget 2026.

The Budget this year has proposed reducing Tax Collected at Source (TCS) on the sale of overseas tour programme packages to 2% from the current 5% and 20%. TCS on the Liberalised Remittance Scheme (LRS) remittance for education and medical purposes will also be cut to 2% from 5%. Besides, the filing of tax returns will be staggered. Individual taxpayers can continue to file ITR-1 and ITR-2 till July 31, while non-audit businesses and trusts will get time till August 31. The Budget also proposes taxing all buybacks as capital gains, rather than treating them as dividends, to protect minority retail investors. Interest awarded by the Motor Accident Claims Tribunal to individuals will be exempt from income tax, and the TDS (tax deducted at source) will be removed. For Form 15G or Form 15H for TDS on dividends and interest, single-window filing with depositories will make compliance easier.

About 17 cancer medicines are becoming cheaper due to a duty exemption. Besides, duty-free personal imports will be allowed for medicines for seven other rare diseases. The list of cheaper products also includes critical and cost-intensive components used in the manufacture of microwave ovens, TV equipment, leather goods, and footwear.