Budget Highlights-2026
Union Budget 2026-27
India’s Union Budget 2026–27 focuses strongly on infrastructure-led growth, manufacturing
expansion, fiscal discipline, and long-term economic development. The government has
aimed to balance economic expansion with controlled fiscal deficit and sector-focused
reforms.
Key Highlights of the Budget 2026
- New Income tax Act ,2025 to come into effect from April 2026
- The simplified Income Tax Rules and Forms will be notified shortly. The forms
redesigned for easy compliance of ordinary citizens. - Due date for filing ITR for non-tax audit cases for business taxpayers has been
extended to 31st August of the subsequent tax year. - Due date for filing revised return has been extended to 31st March of the
subsequent tax year, with a nominal fee. - Single window filing with depositories for Form 15G or 15 H for TDS on dividends,
interests etc - TAN for property transactions involving NRIs will be replaced with resident buyers PAN
based challan. - A onetime 6-month foreign asset disclosure scheme for small taxpayers to disclose
their overseas income or asset.
1.Extension of Due Date for Non-Audit Taxpayers:
For non-audit taxpayers except those who file ITR 1 and ITR 2, the due date for filing ITR is
extended to 31st August. This extension is applicable from FY 2025-26 (AY 2026-27).
Simply put, the due dates for ITR-3 and ITR-4 have been extended to 31st August.
i. ITR-1 : 31st July –> No change
ii. ITR-2 : 31st July –> No change
iii. ITR-3 (Non-Audit) : 31st July –> 31st August
iv. ITR-4 (Non-Audit) : 31st July –> 31st August
v. Audit Cases : 31st October –> No change
vi. Revised Return : 31st December –> 31st March
2.Extension to file Revised Return
The Due Date for filing revised return has been extended from 31st December to 31st March.
In case of filing revised return beyond 31st December, then a Late fee will be applicable:
i. Income upto Rs.5 lakh – Late fee of Rs.1000
ii. Income more than Rs.5 lakh – Late fee of Rs.5000
3.TCS Rate Changes:
Budget 2026 introduced targeted relief through lower Tax Collected at Source (TCS):
This is especially impactful for:
- Students studying overseas
- Families paying foreign medical bills
- International travellers
| Specified Goods | Present Rate | Proposed New Rate |
| Alcoholic liquor for human consumption | 1% | 2% |
| Tendu Leaves | 1% | 2% |
| Scrap | 1% | 2% |
| Education and medical remittances above Rs 10 lakhs under LRS | 1% | 2% |
| Remittance for Overseas tour package program | 5% up to Rs 10 lakh, and 20% exceeding Rs 10 Lakhs | 2% for all cases |
4.STT Changes:
| Security Type | Present Rate | Proposed New Rate |
| Futures | 0.02% | 0.05% |
| Options Premium | 0.1% | 0.15% |
| Exercise of options | 0.125% | 0.15% |
5.Indirect Tax Changes:
- The tariff rate on all dutiable goods imported for personal use to be reduced from 20
- per cent to 10 per cent.
- The basic customs duty on 17 drugs/ medicines is to be exempted.
- Duty free personal import of drugs/ medicines and food for 7 more rare diseases.
6.Labour Code:
Although Budget 2026 did not introduce fresh labour law reforms, it operates within the
framework of the landmark labour codes implemented in 2025, signalling a shift from
legislative overhaul to execution and economic integration.
Like GST, which subsume many acts and came as one act. This Labour code subsume
many outdated 29 acts and came into force from 21st November 2025 as Labour codes.
It namely subsumed Wage code, IR Code, OSH Code and SS code.
Although the Central Government released press notification. Now all the state govts
need to nod to this. Only few states. Like Gujarat, Bihar accepted but others still pending
So, we will come to this again once the labour code is implemented.
Final Analysis
Budget 2026 is not about dramatic tax cuts — it is about tax system stability,
simplification, and targeted relief. The government appears to be shifting from rate
reduction to compliance improvement and structural tax reform, which could improve tax
efficiency and taxpayer experience over the long term.
For More
- Budget Speech: https://www.indiabudget.gov.in/doc/budget_speech.pdf
- Budget Highlights: https://www.indiabudget.gov.in/doc/bh1.pdf
Disclaimer: The information on this blog is for general informational purposes only and does not constitute a legal opinion.
About the Author:
Hi,
This is Ravi Kumar H M. Proprietor of Nisarg consultancy. We are providing various services in
the field of Direct and Indirect tax. Mainly, GST, PT, TDS, Labour, ROC,
I am very proud to start my blog. We try our best to put out all the new changes and proposed
changes in above mentioned Acts. Though atmost care is taken while writing this. Any
omissions or commissions are always be welcomed to improve us for next blog writing.
Now eventually Budget announced. So, my first writing will be budget only.