"Motor Accident Claim Interest Exempt From Income Tax": Nirmala Sitharaman
Finance Minister Nirmala Sitharaman proposed several measures to ease the tax burden on citizens in Budget 2026. Key announcements include:
Exemption of interest awarded by Motor Accident Claims Tribunal from income tax, with no TDS on such amounts.
Reduction in TCS rates: overseas tour packages from 5–20% to 2%, and for education and medical remittances under LRS from 5% to 2%.
Clarification on TDS for manpower services, with rates fixed at 1–2% to remove ambiguity.
