Finance Minister Nirmala Sitharaman presented the Union Budget 2026 on February 1. This was her 9th consecutive budget speech which lasted for about 83 minutes. While common people were waiting for price cuts on cars and bikes, the government focused more on relief rules and infrastructure. The minister announced a major tax relief for road accident victims and allocated a large fund to set up charging stations for electric vehicles across the country.
What is the New Rule for Accident Claims?
The government has given a big relief to families of road accident victims. Nirmala Sitharaman announced that the interest received on compensation awarded by the Motor Accident Claims Tribunal (MACT) will now be completely tax-free. Earlier, this interest was considered as income and tax was deducted from it. This change means the full amount will go to the victims without any TDS deduction. This rule is expected to apply from the financial year 2026-27.
What did the Government Say About Electric Vehicles?
Under the PM E-DRIVE scheme, the government has confirmed an allocation of ₹2,000 crore to improve facilities for electric vehicles. This money will be used to install public charging stations at important places like hospitals, metro stations, and highways. The scheme is valid till March 31, 2026, and aims to make it easier for people to use electric 2-wheelers and 3-wheelers.
Did Car and Bike Prices Change in this Budget?
There is no official announcement regarding a cut in vehicle prices in Budget 2026. Many people expected a reduction in GST for EV components, but the rates remain the same. Currently, small cars under 1200cc and bikes up to 350cc attract 18% GST, while large SUVs and luxury cars are taxed at 40%. Car companies have already increased prices by ₹50,000 to ₹1.3 lakh recently due to high production costs.
