Finance Minister Nirmala Sitharaman on Sunday left income tax rates and slabs unchanged in the Union Budget 2026–27, following the sweeping tax reforms announced last year.
The government made no changes to the core tax structure. It unveiled a series of measures to simplify compliance and offer targeted relief to taxpayers.
Sitharaman presented the Budget in Parliament and proposed extending the deadline for filing revised income tax returns. The new deadline will move from December 31 to March 31, subject to a nominal fee.
The move is intended to give taxpayers additional time to correct errors and reduce litigation.
The Finance Minister also announced staggered deadlines for filing returns. Individuals filing ITR-1 and ITR-2 will continue to file returns by July 31, while the government will allow non-audit business cases and trusts to file returns until August 31.
Targeted Exemptions and Relief Measures
To provide further relief, the government will exempt interest awarded by motor accident claims tribunals to individuals from income tax. It will also remove the associated tax deduction at source (TDS).
The government will also grant non-resident Indians supplying capital goods to Indian companies an income tax exemption for five years.
The Budget proposed significant reductions in tax collection at source (TCS). TCS on overseas tour packages will be cut to 2 per cent, down from 5 per cent and 20 per cent, with no minimum threshold.
The government will reduce TCS on education and medical expenses under the Liberalised Remittance Scheme from 5 per cent to 2 per cent.
On the capital markets front, Sitharaman announced an increase in securities transaction tax (STT).
The STT on futures will rise from 0.02 per cent to 0.05 per cent, while the levy on options will increase from 0.01 per cent to 0.15 per cent.
Overall, the Budget prioritises ease of compliance and targeted tax relief, even as it refrains from altering income tax slabs.
To read more such news, download Bharat Express news apps
