<h1>Union Budget 2026 introduces tax rate, surcharge and penalty reforms plus a disclosure scheme for small taxpayers' foreign assets.</h1> The Finance Bill, 2026 sets income tax rates, surcharge structures and a 4% Health and Education Cess for 2026-27; inserts procedural clarifications and new provisions (including a Foreign Assets of Small Taxpayers Disclosure Scheme, 2026); revises return, revised return and fee rules; recasts numerous penal provisions from rigorous to simple imprisonment with graded sanctions; and amends customs, customs tariff and CGST provisions while authorising rules and regulations for procedural details.