Union Budget 2026 highlights are summarized below in transparent, simple tables for quick reference, focusing on key tax changes
Income Tax Changes
| Change | Details | Impact |
|---|---|---|
| Revised ITR Filing | Extended to March 31; fee up to ₹5,000 | Eases corrections for taxpayers |
| Buyback Taxation | Taxed as capital gains for shareholders; extra tax on promoters | Reduces tax arbitrage |
| Sovereign Gold Bonds | Tax exemption only for original subscribers | Limits secondary market benefits |
| PAN for Non-Residents | Mandatory for property sales TDS | Improves tracking |
TDS/TCS/STT Updates
| Category | New Rate | Previous Rate | Applies To |
|---|---|---|---|
| TCS – Education/Medical Remittances | 2% | 5% | Overseas payments |
| TCS – Overseas Tour Packages | 2% | Varies | Travel abroad |
| TCS – Scrap/Tendu Leaves | 2% | 1% | Specified goods |
| STT – Futures | 0.05% | 0.02% | Derivatives trading |
| STT – Options | 0.15% | 0.1% | Options contracts |
| Manpower Supply TDS | 1-2% | None specified | Service providers |
Business Reliefs
| Provision | Key Feature | Benefit |
|---|---|---|
| MAT Rate | Reduced to 14% (final tax) | Lowers corporate burden |
| Presumptive Taxpayers | Exempt from MAT | Simplifies small businesses |
| Tax Audit Defaults | Converted to fee | Avoids penalties |
| Penalty Immunity | Extended to misreporting | Reduces litigation |
Sector Incentives:
| Sector | Incentive | Details |
|---|---|---|
| MSMEs | ₹10,000 crore fund; TReDS expansion | Credit access boost |
| IT Services | Safe harbour 15.5% up to ₹2,000 crore | Profit certainty |
| Data Centers | Tax holiday till 2047 | Attracts investments |
| Infrastructure | ₹12.2 lakh crore capex | Job, growth multiplier |
GST & Customs Reforms:
| Reform | Details | Impact |
|---|---|---|
| Provisional Refunds | For inverted duty structures; no min. thresholds for exports | Faster cash flow for exporters |
| Deferred Duty Payment | Window for trusted MSMEs/manufacturers | Liquidity boost |
| System-Driven Clearance | Auto registration/clearance for trusted supply chains | Trade facilitation |
| BCD Exemptions | 17 cancer drugs, 7 rare diseases; solar/nuclear minerals | Lower healthcare/import costs |
| Advance Rulings | Extended validity for certainty | Reduces uncertainty |
NRI & Non-Resident Benefits:
| Change | Details | Benefit |
|---|---|---|
| Equity Investment Limit | Individual NRI: 5% to 10%; aggregate NRI/OCI: 10% to 24% | Easier stock market access. |
| Property TDS | Use buyer’s PAN instead of TAN for NRIs | Simplifies compliance |
| FAST-DS Scheme | Disclose foreign assets <₹20 lakh; immunity from prosecution | One-time relief |
| TCS Reduction | Education/medical remittances: 5% to 2% | Lower outflow costs |
Procedural & Compliance Eases:
| Provision | Update | Who Benefits |
|---|---|---|
| ITR Revision Window | To March 31 (12 months); fee ≤₹5,000 | All taxpayers |
| Non-Audit Business ITR | Due date: Aug 31 (from Jul 31) | Businesses |
| Appeal Pre-Deposit | Reduced to 10% (from 20%) | Litigants |
| Penalty Immunity | Covers misreporting; no interest in first appeal | Honest taxpayers |
| Lower TDS Certificates | Automated; new scheme for small taxpayers | MSMEs |
Fiscal & Sector Targets
| Area | Allocation/Growth | Notes |
|---|---|---|
| Capex | ₹12.2 lakh crore | Infrastructure push |
| Income Tax Collections | +11.7% in FY27 | Revenue buoyancy |
| Indirect Tax Growth | +3% (GST contraction) | Conservative estimate |
| MSME Fund | ₹10,000 crore | TReDS enhancements |
| IFSC Units | Deduction extended 20/25 years | Financial services |
The information provided in this blog post on Union Budget 2026 is for general informational and educational purposes only and does not constitute professional tax, legal, financial, or investment advice. It is based on the Finance Minister’s speech, Budget documents, and analyses available as of February 2, 2026, and is subject to change upon parliamentary approval, CBDT circulars, or notifications.
