Published: 3 February 2026Economy
Budget 2026-27: Customs Duty on Personal Imports Halved to 10%; STT on Futures Raised to 0.05%
Detailed sectoral analysis of the Union Budget 2026-27 revealed several key indirect tax changes. Customs duty on personal goods imports was halved from 20% to 10%. Securities Transaction Tax (STT) on futures was raised from 0.02% to 0.05%, while STT on options premium was increased from 0.1% to 0.15%. Customs duty-free status was granted for fish catch in the Exclusive Economic Zone (EEZ).
The budget also removed the ₹10 lakh cap on courier exports to boost MSME trade. Foreign cloud service providers received a tax holiday until 2047. The safe harbour threshold for IT services was raised from ₹300 crore to ₹2,000 crore with a single IT services category at 15.5% margin. These moves aim to boost ease of doing business and support the digital economy.
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Practice MCQ from this story
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Linked questionHard
What is the revised Securities Transaction Tax (STT) rate on futures in the Union Budget 2026-27?
Explanation · Correct answer CSTT on futures was raised from 0.02% to 0.05%, and STT on options premium was increased from 0.1% to 0.15% in the Union Budget 2026-27.
Frequently asked questions
What change was made to customs duty on personal imports in Budget 2026-27?
Budget 2026-27 **halved customs duty on personal imports from 20% to 10%**. This reduction makes internationally purchased goods more affordable for Indian consumers and aims to reduce the incentive for under-declaration of personal imports.
How did Budget 2026-27 change the Securities Transaction Tax on futures and options?
Budget 2026-27 **raised STT on futures from 0.02% to 0.05%** and increased **STT on options premium from 0.1% to 0.15%**. These increases aim to moderate speculative trading in derivatives markets and generate additional revenue from financial transactions.
What IT services tax changes were announced in Budget 2026-27?
Budget 2026-27 **raised the safe harbour threshold for IT services from ₹300 crore to ₹2,000 crore** with a single IT services category at **15.5% margin**. Foreign cloud service providers received a **tax holiday until 2047**, boosting India's attractiveness as a cloud services hub.
What trade facilitation change was made for MSME courier exports in Budget 2026-27?
Budget 2026-27 **removed the ₹10 lakh cap on courier exports**, enabling MSMEs to export larger volumes through courier services without restrictions. This directly benefits small exporters who rely on courier channels for cross-border e-commerce and international trade.
What customs duty concession was granted for fish catch in the EEZ in Budget 2026-27?
Budget 2026-27 granted **customs duty-free status for fish catch in the Exclusive Economic Zone (EEZ)**. This concession supports India's fishing communities and maritime economy by reducing costs for fish caught in India's designated maritime zone.
