Top News

Budget 2026: Finance Minister Nirmala Sitharaman has played a very interesting bet in the general budget presented for the financial year 2026-27. During the budget speech, when the entire nation was watching the TV screens with bated breath, expecting a change in the tax slabs, the Finance Minister made it clear that no changes are being made in the existing income tax slabs and standard deduction. On the surface, it seems that nothing much has happened for the common man, but there are many big changes hidden in the budget documents and detailed announcements, which will have a direct impact on your financial health.

Even though the slabs are old, the entire tax ecosystem is about to change. The new income tax law is going to come into effect from April 1, 2026, which will make the rules easier for taxpayers to a great extent. Let us understand in detail what effect the budget announcements will have on you.

The world of tax filing will change from April 1, 2026

The biggest announcement of the budget is regarding the new 'Income Tax Act'. The Finance Minister has announced that the new law will come into effect from April 1, 2026. Its objective is to make the tax filing process so simple that an ordinary citizen can file his return even without any professional help. New and simple rules for this will be notified soon.

Even though the slabs have not changed, it is important to understand the mathematics under the new tax regime. By getting rebate under section 87A on taxable income up to Rs 12 lakh, tax becomes zero. Besides, the salaried class will also continue to get standard deduction of Rs 75,000. In the new system, there are no different slabs for the elderly below 60 years and above 80 years, the rules are the same for everyone. At the same time, for those choosing the old regime, only the old slabs will remain applicable.

Traveling abroad and studying became cheaper

A big relief has been given in the budget for the middle class and students. If you are planning to travel abroad, now it will be cheaper. The government has reduced the TCS rate on foreign tour packages directly to 2%. Earlier it used to range from 5% to 20%. Apart from this, under the Liberalized Remittance Scheme (LRS), if you send money abroad for children's education or treatment, now only 2% TCS will be charged on it, which was earlier 5%.

Another big relief is regarding the deadline for filing returns. Often people want to revise their Income Tax Return (ITR) due to some mistake. Earlier its last date was 31st December, which has now been extended to 31st March. This means that now you will have additional time of three months to correct your mistake.

New Income Tax Regime for the financial year 2026-27

Old Tax Regime for the financial year 2026-27

1. For citizens below 60 years of age (General Citizen)

2. For 60 years to less than 80 years of age (Senior Citizens)

3. For 80 years and above (Very Senior Citizens)

Rules changed for investors

This budget has been a mixed bag for investors. The rules regarding Sovereign Gold Bond (SGB) have been tightened. If you buy gold bonds from the secondary market, you will now have to pay tax on the profit you get on maturity. However, tax exemption on original bonds purchased directly from the government will continue.

The rules for 'buyback' done by companies in the stock market have also changed. Now the income from share buyback will be considered as capital gain of the shareholder and will be taxed accordingly. To prevent tax evasion, a provision for strict tax has also been made on promoters. Also, trading in the futures and options (F&O) market has become expensive because the Securities Transaction Tax (STT) has been increased.

On the other hand, the process has been made easier for non-resident Indians (NRIs) buying property in India. Now the buyer will not need to take TAN number, he will be able to deposit TDS using his PAN only.

This change happened from crypto to foreign assets

The government's stand regarding the digital world and undeclared assets is clear. A provision has been made for heavy fines for hiding transaction information by crypto companies. At the same time, a one-time 'Disclosure Scheme' has been introduced for small taxpayers who do not disclose foreign assets. Under this, students or young professionals can avoid legal action by paying 30% tax and fine.

Additionally, the interest received on motor accident claims has now been made completely tax-free, which is a great humanitarian relief to the families of the victims. Also, for those who order goods from abroad for personal use, the custom duty has been reduced from 20% to 10%. Cloud service providers have also been given tax holiday till 2047 for setting up data centres, which will accelerate digital services.