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TaxTMI 
TaxTMI 
TaxTMI 
Budget updates on Capital Gain, TDS, SGB, TCS, STT, ITR deadline rules today on 1st Feb 2026
- STT rates revised for futures and options:
- STT on futures hiked to 0.05% vs 0.02%
- STT on options premium hiked to 0.15%
- Tax all types of share buybacks as capital gains
- TDS on the sale of immovable property by NRI shall be deducted by resident buyers.
- For the ease of taxpayers holding securities in multiple companies, propose to enable depositories to accept Form 15G or Form 15H from the investor and provide it directly to various relevant companies.
- Exemption from capital gains tax in respect of Sovereign Gold Bonds available only where such bonds are subscribed to by an individual at the time of original issue and are held continuously until redemption on maturity.
- No deduction shall be allowed in respect of any interest expenditure incurred in relation to dividend income or income from units of mutual funds.
- TCS rates on Sale of overseas tour program package - @ 5% and 20% (based on amount) revised to 2% (flat rate, no amount threshold) and on Payments under LRS for education and medical purposes @ 5% reduced to 2%
- One-time relief to small taxpayers with small investments in foreign stocks and funds.
- The new announcements on ITR and revised ITR filing are as follows:
- Non-audit business cases or trusts will be able to file their returns till August 31.
- Revised returns can be filed till March 31 after paying a nominal fee of Rs.1000 or Rs.5000, if filed after December 31, depending on whether the income is below or above Rs.5 lakh.
- Also Individuals with ITR 1 and ITR 2 returns will continue to file till 31st July and non-audit business cases or trusts are proposed to be allowed time till 31st August.
- At present revised return can be filed upto 31st December. Return filing period extends up to October 31st for persons engaged in international transactions under section 92E. As proposed to allow extending the time of filing revised return upto 31st March. This revised return can be of original return or belated return. A nominal fee of Rs.1000 or Rs.5000 is also proposed where the revision of original or belated return is made after 31st December depending if the income is upto or more than Rs.5 lakh.
- Gains from such buybacks will now be taxed as capital gains, not as income from other sources.
- Income-tax forms have been redesigned, such that ordinary citizens can comply without difficulty and will be notified soon.