Union Finance Minister Nirmala Sitharaman, while presenting the Union Budget 2026, announced key tax relief measures for individuals. Interest awarded by Motor Accident Claims Tribunals to natural persons will now be fully exempt from income tax, and the requirement of TDS on such interest payments has been removed. The move is aimed at ensuring faster and full compensation to accident victims. Additionally, the TCS rate on overseas tour programme packages will be reduced to 2 per cent. TCS on remittances for education and medical purposes under the Liberalised Remittance Scheme will also be lowered from 5 per cent to 2 per cent, providing relief to families. Budget 2026 Live News Updates: Nirmala Sitharaman Cuts TCS on Overseas Tour Package From 5% to 2%.

Motor Accident Compensation Interest Exempted From Income Tax

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