Middle class gets facilitative push in Budget: Sitharaman

Finance Minister Nirmala Sitharaman on Wednesday asserted that the Union Budget 2026-27 has placed strong focus on easing the financial burden of the middle class through a series of “facilitative” measures.

Replying to the debate on the Finance Bill in the Lok Sabha, she rejected Opposition claims that the middle class has been ignored, and highlighted targeted steps to improve their financial flexibility and day-to-day convenience.

Among the key measures, the government has reduced the Tax Collected at Source (TCS) on payments made for foreign education and medical treatment under the Liberalised Remittance Scheme. TCS on overseas tour packages has also been sharply cut to 2 per cent from the earlier 20 per cent, bringing relief to middle-income families planning travel abroad.

To ease the cost of healthcare, customs duty has been exempted on 17 critical drugs, along with provisions for duty-free import of certain medicines for personal use. The Budget also simplifies tax compliance by allowing updated income tax returns even during reassessment and introducing a foreign asset disclosure window for small taxpayers.

In addition, customs rules for passengers have been rationalised to reduce disputes at airports, making international travel smoother for ordinary citizens.

Sitharaman said these steps are designed to improve “ease of living” and reduce compliance burdens, particularly for middle-class households. She stressed that the government’s broader approach is to build a trust-based tax system while ensuring genuine taxpayers face fewer hardships.

The Finance Minister maintained that such reforms reflect a shift towards a more citizen-friendly framework, with the middle class at the centre of policy focus.