Budget 2026: Duty-free baggage limits to be increased, says FM Sitharaman

FM said the govt will revise baggage clearance rules and enhance duty-free allowances to reflect modern travel patterns and address passenger concerns over valuation and temporary carriage of goods

The government will increase limits on items that passengers can bring from abroad under duty-free allowances to align them with present-day travel realities, Finance Minister Nirmala Sitharaman said in her Budget 2026 speech on Sunday.

 

As per the CBIC notification issued later during the day, the government has officially overhauled travel regulations by introducing the Baggage Rules, 2026, which directly supersede the Baggage Rules, 2016. 

 

Effective February 2, 2026, the general duty-free allowance for Indian residents and tourists of Indian origin has been hiked from ₹50,000 to Rs75,000. In a major move to assist modern travelers, the government now allows the duty-free import of one new laptop or notepad for any passenger aged 18 or older, an item that previously lacked a dedicated free allowance in the main rules. 

 

Crucially, for any items brought for personal use that exceed these free limits -- known as personal imports -- the standard customs duty rate has been slashed from 20 per cent down to 10 per cent, effectively halving the tax burden on extra shopping. This new "trust-based" regime also encourages the use of electronic declarations to ensure a faster, more seamless experience for passengers at international terminals 

 

“I propose to revise provisions governing baggage clearance during international travel to address genuine concerns of passengers. The revised rules will enhance duty-free allowances in line with present-day travel realities and provide clarity in temporary carriage of goods brought in or taken out,” she said.

 

Temporary carriage of goods refers to items that passengers bring to India for temporary use and take them back, or take out of India and bring back, without selling them. These typically include laptops, cameras, professional equipment, musical instruments or tools carried for work or personal use. While such items are generally permitted, passengers often face uncertainty over valuation and duty applicability, which the proposed revision aims to address.