Budget 2026: 10 Major Income Tax Changes Every Taxpayer Must Know
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Moneycontrol•01-02-2026, 18:39
Budget 2026: 10 Major Income Tax Changes Every Taxpayer Must Know
- •Finance Minister Nirmala Sitharaman presented the Union Budget 2026-27, proposing a new Income Tax Act, 2025, effective April 1, 2026, to replace the 1961 Act for simpler compliance.
- •Tax Collected at Source (TCS) on overseas remittances for education and medical treatment will be reduced from 5% to 2% from April 1, 2026.
- •The deadline for filing revised tax returns will be extended from nine months to 12 months after the tax year, while the belated return deadline remains unchanged.
- •Security Transaction Tax (STT) on equity futures will increase from 0.02% to 0.05%, and on options from 0.1% to 0.15%, making derivatives trading more costly.
- •A six-month foreign asset disclosure scheme is introduced for voluntary compliance, allowing taxpayers to declare undisclosed overseas income without prosecution.
Why It Matters: Budget 2026 introduces a new Income Tax Act and significant changes impacting taxpayers, investors, and NRIs.
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