Union Finance Minister Nirmala Sitharaman on Sunday announced a series of tax measures in the Union Budget 2026 aimed at improving ease of living, simplifying compliance and providing direct relief to common taxpayers, especially Indian travellers and students going abroad.
Presenting the Budget in Lok Sabha, Nirmala Sitharaman said the government’s focus is on making the income tax system simpler and more citizen-friendly.
As part of the proposals, the Finance Minister announced that interest awarded by the Motor Accident Claims Tribunal (MACT) to a natural person will be fully exempt from income tax.
She said, “Any interest awarded by the Motor Accident Claims Tribunal to a natural person will be exempt from income tax and any TDS from this account will be done away with.”