Budget 2026 - What FM Sitharaman said

The government has proposed a swayed timeline for filing income tax returns. Individuals filing ITR-1 and ITR-2 will continue to have the July 31 deadline, while non-audit business entities and trusts will be allowed to file their returns up to August 31.

Extending the time limit for filing revised income-tax returns from December 31 to March 31, with the provision to do so on payment of a nominal fee.

Proposed a six-month foreign asset disclosure scheme under the Union Budget 2026-27 - Benefit to small taxpayers such as students, tech professionals, and relocated NRIs, providing them an chance to systematise there foreign assets

Income Tax Act 2025: New income tax framework to take effect from 1 April 2026 with simplified rules and redesigned forms to be notified shortly. A single 'tax year' proposed eliminating the difference between the assessment year and previous year. Additionally, it allows taxpayers to claim TDS refunds even if ITRs are filed after the deadline, without any penal charges.

Motor Accident Compensation - Interest awarded by the Motor Accident Claims Tribunal to natural persons exempted from income tax.

Lower TCS rates for overseas travel, education.

Reducing TCS on sale of overseas tour packages from 5% and 20% to 2%, with no minimum amount stipulation.

TCS for remittances for education and medical purposes under the Liberalised Remittance Scheme will be reduced from 5% to 2%.

HOW WILL EFFECT OUR POCKET?
Items that get cheaper

• Aircraft parts and components
• Microwave oven parts
• 17 essential drugs, including cancer medicines
• Medicines, drugs and special medical food imported for treatment of select rare diseases
• Several imported items meant for personal use
• Specified inputs for leather exports, aimed at supporting exporters hit by high US tariffs
• Smartphones and tablets manufactured in India Items that get costlier
• Luxury watches
• Imported alcohol