New Delhi, Feb. 1 -- During the Union Budget 2026-27 presentation, Finance Minister Nirmala Sitharaman proposed a significant overhaul of the tax collected at source (TCS) framework, aiming to reduce the multiplicity of rates, as well as rationalise the TCS rates on certain goods and services.

Presenting her ninth consecutive Budget, Sitharaman said the cut in TCS rates in specific areas aims to ease the financial burden on taxpayers. This announcement comes as part of the government's broader effort to simplify tax compliance and reduce upfront cash outgo.

- Sale of alcoholic beverages for human consumption: TCS rates on alcoholic drinks will be increased from 1% to 2%.

- Sale of tendu leaves: This product will attract a TCS rate of 2...