Budget 2026: income tax changes at a glance

Individuals

• No change in slabs, rebate or standard deduction under either regime.
• ITR-1 and ITR-2 still due on 31 July. Non-audit business returns now due on 31 August.
• Revised returns can be filed up to 31 March, with a small fee after 31 December.
• Updated returns allowed even after reassessment proceedings begin, with an extra 10% tax.
• Interest on motor accident compensation is fully exempt.
• Sovereign Gold Bond redemption exemption only for original subscribers who hold to maturity.
• Interest expense can no longer be deducted against dividend or mutual fund income.
• Form 15G/15H can be given once to the depository to cover all companies.

Investors

• STT up: futures 0.05%, options 0.15%.
• Buybacks taxed as capital gains for all shareholders; extra tax for promoters.

TCS (collection at source) cut

Businesses

• MAT down to 14%, as a final tax with no new credit.
• Many technical penalties converted into fees; prosecution rationalised, with maximum jail capped at two years for several offences.
• Pre-deposit for stay of demand in appeal reduced from 20% to 10% of the core tax.

NRIs and foreign assets

• TDS on property bought from an NRI is deducted by the resident buyer without needing a separate TAN.
• A one-time six-month disclosure window for small taxpayers' foreign assets, and no prosecution for non-disclosure of non-immovable foreign assets below ₹20 lakh.

Sources

• Finance Bill / Finance Act, 2026 (CGST amendments to sections 15, 34, 54 from a notified date)