Budget 2026-27 LIVE: FM proposes to Exempt BCD on Capital goods Imports for Processing Critical Minerals
The FM also exempted basic customs duty on many goods including 17 drugs and medicines, Raw Materials of import of Manufacture of parts of Aircrafts..etc.
The Union Budget for the Financial Year 2026-27 was presented by Finance Minister Nirmala Sitharaman in the Lok Sabha today (Sunday, 1 February 2026). This is her 9th consecutive budget.
While presenting the Union Budget 2026-27 in Parliament, Finance Minister Nirmala Sitharaman proposed a targeted customs relief measure by announcing exemption of Basic Customs Duty (BCD) on the import of specified capital goods used for the processing of critical minerals.
The proposal intends to improve India’s strategic mineral value chain and reduce the cost of setting up advanced processing infrastructure required for sectors such as clean energy, electronics, semiconductors, batteries, and defence manufacturing.
According to the Budget speech, the BCD exemption is intended to encourage domestic capacity creation in mineral processing by lowering upfront project costs and improving technology access.
The industry stakeholders are expected to benefit from the duty exemption.
The FM also exempted basic customs duty on many goods including 17 drugs and medicines, Raw Materials of import of Manufacture of parts of Aircrafts..etc.
Additionally, with regards to the direct taxes, the minister also proposed to reduce the TCS for the education and medical purposes under LRS from 5% to 2%. Also, it has announced that the revising of the income tax return will be allowed with a nominal fee from December 31st to March 31st.
The budget also proposed that the small Taxpayers can obtain Lower or Nil Deduction Certificates without Approaching the Assessing Officer. The minister also said that the new simplified rules and forms under the new income tax act, 2025 will be out soon.
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