Indian Budget 2026 | Top 10 frequent questions

No changes to tax slabs or standard deduction for FY 2026-27.

The basic exemption limit for FY 2026-27 is Rs 4,00,000 for individuals/HUF under New tax Regime. Also, the tax slabs in New Tax regime are similar to Budget 2025-26. The new tax slab rates in New Tax Regime are as follows

However there are no changes to slab rates in Old tax regime

Budget 2026 is focussed on stabilising already announced tax reforms in the earlier budgets, hence there are no material changes in terms of tax slabs etc.

Due date for salaried taxpayers filing ITR-1 & ITR-2 shall remain 31st July.

But, if you have additional business income beyond salary like business or profession which don’t require audit, the due date for filing income tax return is 31st August

Yes, even if your income is 6 lakhs and you owe no taxes, you must file income tax forms. This is because the basic exemption ceiling for filing income tax returns under the new tax regime is Rs 4 lakh.

In the same way, even if your taxable income is less than 12 lakhs (after applying the standard deduction for salaried employees), you must file your tax returns yearly.

Even if there is no tax to pay, but completing an income tax return (ITR) is still necessary. Every person whose income exceeds Rs. 4 lakhs under the new tax regime is required to file an income tax return.

Till now, if any resident buyer is purchasing any property from NRI seller, the resident buyer is required to apply for TAN, deduct and deposit the TDS and file Form 27Q.

As per Budget 2026, the resident buyer (Individual or HUF) is not required to apply for TAN, and he can deduct the TDS using his PAN and file challan cum return with Income Tax Department. This is applicable from 01st October 2026

This reduces the compliance burden on the resident buyer from application of TAN, filing 27Q and surrender of TAN after process.

The Finance Act revises Securities Transaction Tax (STT) rates for specific derivatives transactions on recognized stock exchanges. Sales of securities options, options that are exercised, and securities futures are subject to the amended rates.

The rate changes are as follow

1. Futures STT: 0.02% → 0.05% 🔺
2. Options Premium STT: 0.10% → 0.15% 🔺
3. Options Exercise STT: 0.13% (0.125%) → 0.15% 🔺

Govt. made the decision to mitigate investor losses from F&;O trading. This provision would make speculative F&O trading less attractive with the increased STT.

The amended rate is applicable from 1st April 2026

Till now, the due date for filing revised return is 31st December (within 9 months from the end of relevant assessment year). As per Budget 2026, the revised return can be filed until 31st March (within 12 months from the end of relevant Assessment year) with a nominal fee. The fee for filing revised returns post 31st December is as follows

• Revised returns filed till 31st December – No fees
• Revised returns filed post 31st December (Upto Rs 5 lakhs income) – Rs 1000
• Revised returns filed post 31st December (more than Rs 5 lakhs income) – Rs 5000

Yes, Budget 2026 provides one time opportunity for eligible taxpayers to disclose their foreign income and foreign assets which are not reported earlier in their income tax returns. This scheme provides immunity from further tax, penalty and prosecution under the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015.

This scheme applies to the eligible taxpayers whose aggregate value of undisclosed foreign assets or foreign income does not exceed Rs 1 crore as 31st March 2026 or foreign assets acquired from disclosed income or during status as a non-resident, the value of the asset must not exceed ₹ 5 Crore as on 31st March 2026

This scheme will come into force as notified by Central Government.

1. Budget 2026 has rationalized the TCS rates in Budget 2026 with the intent to provide uniform rate of TCS to the extent possible. This is applicable from 01st April 2026
   
   

   Nature of receipt	Current rate	Proposed Rate
   Sale of alcoholic liquor for human consumption	1%	2%
   Sale of tendu leaves	5%	2%
   Sale of scrap	1%	2%
   Sale of minerals, being coal or lignite or iron ore	1%	2%
   Remittance under the Liberalised Remittance Scheme of an amount or aggregate of the amounts exceeding ten lakh rupees —	5% for purposes of education or medical treatment 20% for purposes other than education or medical treatment	2% for purposes of education or medical treatment No Change
   Sale of "overseas tour programme package" including expenses for travel or hotel stay or boarding or lodging or any such similar or related expenditure.	5% of amount or aggregate of amounts up to ten lakh rupees 20% of amount or aggregate of amounts exceeding ten lakh rupees	2% 2%

2. Budget 2026 has included the "supply of manpower" services u/s 194C of income tax act 1961 for the purpose of TDS. TDS will be deducted @ 1%/2% depending in type of deductee. It is applicable from 01st April 2026.

The other changes announced in Budget 2026 is as follows

1. Updated Returns
   
   
   • The taxpayers can file the updated returns if they want to reduce the loss compared to the loss filed in earlier return. Earlier this facility was not available
   • Till now, there is no option to file an updated return for taxpayer if he has any scrutiny notice pending. Budget 2026 now enables the taxpayers to file updated returns with additional 10% tax even if they have any open scrutiny notices
   • The fees for filing updated returns in the case of scrutiny notices are as follows
     
     

     Timeline (If updated return filed within)	Additional amount to be paid
     Within 12 months from the end of the financial year succeeding the relevant tax year(AY)	35% on tax and interest (25%+10%)
     After 12 months but before 24 months	60% on tax and interest (50%+10%)
     After 24 months but before 36 months	70% on tax and interest (60%+10%)
     After 36 months but before 48 months	80% on tax and interest (70%+10%)

     
     

     No penalty of under-reporting or misreporting of income will be levied if the taxpayer’s files updated returns in cases of scrutiny notices

2. No interest expenditure is allowed as deduction against the dividend earned from mutual fund units. Till now, 20% interest expenditure is allowed as deduction against mutual fund dividend income
3. The capital gains arising from redemption of sovereign gold bonds is exempted only for the bonds issued by RBI. If the Sovereign gold bonds are purchased in secondary market, the exemption is not available, and the taxpayer is required to pay taxes on the capital gains. This is applicable from 01st April 2026.
4. The amount received by taxpayer on buy back of shares by company is taxable under the head "Capital gains". Till now, it is treated as deemed dividend. However, an additional tax is proposed to be collected from taxpayers who are promoters
5. Simplified procedure for getting certificate of lower or nil deduction of tax at source (Form 13) is introduced and it is applicable from 01st April 2026.
6. Interest income awarded by Motor Vehicles Act, 1988 is exempted in the hands of individual and legal heirs and no TDS will be deducted. It is applicable from 01st April 2026.