<h1>Union Budget 2026 direct tax reforms: MACT interest exemption, TDS rationalisation, FAST DS disclosure and MAT reform.</h1> Budget 2026 direct tax reforms introduce exemptions for interest awarded by Motor Vehicle tribunals to individuals with no TDS; broaden the definition of work to include supply of manpower for TDS; simplify electronic applications for lower or nil TDS certificates and depository filing of no deduction declarations; create FAST DS for limited value foreign asset disclosures with immunity on payment; expand updated return rules; convert certain penalties into automatic fees and partially decriminalise prosecution offences; and reform MAT and buy back tax treatment, alongside multiple sectoral and timing adjustments, largely effective from 1 April 2026.