The Union Budget 2026-2027 makes limited but targeted provisions for the youth and the middle class, primarily through easing compliance rather than offering direct tax relief.
CA Sumeet Mehta notes that while there are no benefits on the income tax front, the government has reduced Tax Collected at Source (TCS) for students pursuing higher education abroad, lowering the upfront financial burden.
Similar relief has been extended for foreign travel and overseas medical treatment, reducing compliance hassles by linking payments more seamlessly to PAN.
However, Mehta believes these measures offer only marginal relief to the broader middle class, as India is increasingly becoming a medical tourism hub, limiting the relevance of overseas treatment benefits.
The primary beneficiaries are students, young professionals, and budget travellers, who will face lower compliance costs when travelling or studying abroad.
Video: Hitesh Harisinghani/Rediff