The Income Tax Act, 2025 will come into effect from 1 April 2026 Simplified Income Tax Rules and Forms will be notified shortly.
No Major Changes in Income Tax Slab Rates in both Old an New Regime.
No Changes in Income Tax Deduction in Old and New Regime.
No Major GST Reforms announced in Budget 2026.
TCS rate on Overseas tour package reduced to 2% from current 5% without any limit
TCS rate on under LRS for educational and medical purpose reduced to 2% from current 5% without any limit
For non-business cases the due date for filing returns will be 31st July
For non-audit business cases and trusts, the due date for filing returns will be extended up to 31st August
Date extended for revised ITR has been extended from 31st Dec to 31st March subject to a nominal fees
Procedure to take TAN no in case of Immovable property purchase from NRI has been removed
Finance Minister announces 6 focus areas to boost growth, including manufacturing sectors, strengthening MSMEs, revitalising industries developing city economic regions
The government has proposed to introduce a dedicated 10,000 crores SME growth fund to create future jobs, incentivising enterprises based on select criteria
A scheme for rare earth permanent magnets was launched in 2025 November and now propose to support the mineral-rich states of Odisha, Kerala, Andhra Pradesh and Tamil Nadu to establish dedicated rare earth corridors
Government to Establish new dedicated freight corridors connecting Dangkuni in the east to Surat in the west.
7 new high-speed rail corridors proposed, including Mumbai–Pune, Hyderabad–Bengaluru, and Delhi–Varanasi
Public Capex increased to Rs. 12,20,000 crores in 2026-24
Govt has proposed setting up of dedicated REITs to accelerate recycling of significant real estate assets
Allocation of Rs. 5000 crores of per city for City Economic Regions
Operationalize 20 new national waterways over the next five years to promote environmentally sustainable cargo movement.
Corporate bond market – Market making framework proposed and total returns swaps on corporate bonds. FM proposes the introduction of total return swaps on corporate bonds to deepen the debt market.
Under Portfolio Investment Scheme, FM Nirmala Sitharaman proposes investments increase from foreign individuals/ entities indian listed companies from 5 % to 10%
₹20,000 Cr allocated over 5 years for carbon capture across power, steel, cement, refineries & chemicals.
The Union Budget has outlined a major push for environmentally sustainable passenger transport with the proposal to develop seven high-speed rail corridors across key urban and economic centres. These corridors will act as growth connectors, cutting travel time, reducing emissions, and supporting regional development. Union Finance Minister Nirmala Sitharaman proposed setting up a high-level committee on banking for Viksit Bharat. This committee will comprehensively review the banking sector.
Software development services, IT enabled services, knowledge process outsourcing services and contract R&D services to be clubbed under a single category Information Technology Services with a common safe harbour margin of 15.5 % applicable to all
Finance Minister said that Indian banks are now in a strong position, with healthy balance sheets, high profits, and better control over bad loans. With asset quality improving and coverage crossing 98%, the sector is seen as stable and ready for the next phase of growth.
Finance Minister Nirmala Sitharaman announced the launch of the India Semiconductor Mission (ISM) 2.0, with an outlay of Rs 40,000 crore, aimed at building on the gains of the earlier phase and accelerating growth in the semiconductor sector.
Govt will create trails in HP, Uttarkhand and J&K, Araku valley (AP) and Pothigai Malai (TN) for trekking & hiking experience to boost tourism. Govt to document all spiritual and heritage sites
The FM announces support for animal husbandry through a credit-linked subsidy programme focused on entrepreneurship development, scaling up and modernising livestock enterprises, and expanding livestock, dairy, and poultry activities
India to host the Global Big Cats Summit with ministers from 95 range countries to deliberate on conservation strategies
15 archaeological sites to be developed into vibrant experiential cultural destinations
Centre announced plans to promote astrophysics and astronomy through immersive learning experiences. Set up or upgrade telescope infrastructure facilities across the country. Key projects include the National Large Solar Telescope, National Large Optical Infrared Telescope, Himalayan Chandra Telescope, and Cosmos 2 Planetarium.
AI in agriculture Bharat Vistad to enhance farm productivity, provide better decision-making tools for farmers, and mitigate risks using AI systems
Govt to set up high-powered Education to Employment Panel to assess AI impact on jobs
Centre to partner with states to restore glory of sandal wood ecosystem
Government roposed to help women entrepreneurs & SHGs through SHE outlets.
Government in order to scale up artificial limbs production to help Divyangs and senior citizens with assistive products. Divyang Sahara Yojana – to support ALIMCO to set up and scale up production of assistive devices; assistive tech marts to be set up.
A New National Institute of Design to be set up in eastern part of India
FM proposes upgrading the WHO Traditional Medicine Centre in Jamnagar
FM announces Indian Institute of Creative Technologies Mumbai to be supported in setting up AVGC Content Creator Labs in 15,000 secondary schools and 500 colleges.
FM Nirmala Sitharaman announces support for states to set up 5 regional medical tourism hubs, positioning India as a global healthcare destination
Fiscal Deficit has been reduced below 4.5% of GDP
Debt to GDP for FY27 set at 55.6% vs 56.1% in FY26 Budget
A ship repair ecosystem catering to inland waterways will be set up at Varanasi and Patna
15 heritage sites identified for cultural development — incl. Dholavira, Rakhigarhi, Adhichanalur
Government propose to launch a Khelo India Mission to transform the Sports sector over the next decade.
India proposes 15% safe harbor on cost for data center services provided by related entities from India
Interest awarded by the motor accident claims tribunal to a natural person will be exempt from income tax
No penalty for foreign assets disclosure missed of less than 20 Lacs retrospective from 01.10.2024
Decriminalization and removal of penalties for minor offences.
One-time 6-month Foreign Asset Disclosure Scheme for students, NRIs & small taxpayers with undeclared overseas income/assets or assets not previously declared
Proposed to provide tax holiday 2027 for cloud services company
Buy Back to be taxed as Capital gains as per Budget 2026
Zero Corporate Tax Proposals for Foreign Giants Building ‘AI Factories’ in India to Power Viksit Bharat!
Supply of manpower services to be explicitly covered under payments to contractors for TDS, removing ambiguity. TDS on manpower services to be levied at 1% or 2% only
TCS rates for alcoholic liquor, scrap tendu leaves to reduce from 2% to 5%
No MAT for Non Resident entities opting for Presumptive scheme as per Income Tax
MAT rate has been reduced to 14% from current rate of 15%
Brought forward MAT credit until 30 March to be allowed for set off
STT raised on Futures & Options. Finance Minister Announces Increase of STT on Options Premium Trading to 0.15% From 0.1% and STT on Future 0.02% to 0.05%
Govt will facilitate professional institutes such as ICAI, ICMAI, ICSI to make short term Modular courses and practical tools to develop a cadre of corporate mitras in Tier 2 and Tier 3 Towns. These accredited para professionals will help MSMEs to meet compliance requirement at afforable costs
FM proposes to make Minimum Alternate Tax final tax for corporates
Big boost for exporters! Duty-free imports of specified inputs proposed, increasing from 1% to 3% of previous year’s export turnover
Exemptions on items for custom and duty- seafoods, shoe or purse, lithium ion cells, import of sodium antimonate.
Basic custom duty- goods required for nuclear power projects, biogas excluded, raw materials for aircraft, parts of microwave
Personal imports goods duty cut to 10% from 20%.
17 drugs or medicines exempted from BCD used in cancer treatment.
Duty-free period at AEOs in Tier-2 and Tier-3 cities extended from 15 days to 30 days
