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Union Budget 2026: Finance Minister Nirmala Sitharaman made a major announcement regarding studying and medical treatment abroad while presenting the budget today. Let's find out the complete details.

Union Budget 2026: Union Finance Minister Nirmala Sitharaman presented the Union Budget 2026-27 today. This was her ninth consecutive budget and only the second time in history that the budget was presented on a Sunday. Among the many beneficial announcements for taxpayers, one decision is particularly significant for both families and students. Due to reduced taxes, studying abroad, medical treatment, and travel have now become considerably cheaper. Let's find out how much tax the government has reduced.

Major Relief on Education and Medical Treatment Abroad

The most important announcement concerns Indians who send money abroad for education and medical treatment. The government has reduced the TCS (Tax Collected at Source) under the Liberalized Remittance Scheme from 5% to 2%. This means a direct tax relief of 3%. This will significantly reduce the financial burden on students studying abroad and patients seeking medical treatment overseas. Previously, families had to block a larger amount as tax while sending money, although this could be adjusted later while filing returns. However, this tax has now been reduced.

Foreign Travel Also Cheaper

Foreign travel has also received major relief. The TCS on international tour packages has been reduced from the previous 5% and in some cases 20% to 2%. Importantly, the government has removed the minimum threshold condition. This means that the lower rate will now apply regardless of the package price. According to the budget announcement, TCS on foreign travel has been reduced to two percent, TCS on education abroad has been reduced from 5% to 2%, and TCS on medical treatment abroad has been reduced from 5% to 2%.

More Time to File Revised Income Tax Returns

Another major relief for taxpayers is the extension of the deadline for filing revised income tax returns. Previously, revised returns had to be filed by December 31st. However, this deadline has now been extended to March 31st. This means taxpayers will have an additional three months to correct errors or omissions. Although a nominal fee will be charged, this move will provide a second chance for compliance.

Easier Rules for Sending Money Abroad

Under the Liberalized Remittance Scheme, sending money abroad for education or healthcare has become easier and cheaper with reduced TCS (Tax Collected at Source). This measure will be particularly helpful for middle-class families who rely on their savings or loans for overseas education or essential medical procedures. The lower upfront tax will also significantly improve liquidity, as families will no longer have to wait months to claim refunds.