Income Tax 2026 Live Updates: Finance Minister Nirmala Sitharaman on Sunday presented her ninth consecutive Union Budget in Parliament. For taxpayers across the country, one question dominated the conversation even before the speech began: would there be any relief in income tax slabs? Would the middle class finally see some take-home salary boost this year?
For the salaried class, the Budget isn’t about fiscal math or macro numbers — it’s about EMIs, rent, school fees, savings, and whether there’s a little more breathing room at the end of the month. Even more than allocations to sectors or big-ticket policy announcements, income tax changes directly impact household finances, making them the key focus for millions.
Last year, FM Sitharaman had offered significant relief by making income up to Rs 12 lakh effectively tax-free under the new regime. Here’s the list of big announcements from this budget.
Budget 2026: Key Income Tax Changes — Simplified
Direct Taxes – Income, Investments, Property
No change in income tax slabs: Both old and new tax regimes remain unchanged for FY 2026–27. Take-home pay stays the same.
Share buybacks taxed as capital gains: All share buybacks will now be treated as capital gains, bringing clarity and closing loopholes for equity investors.
Relief for small taxpayers with foreign assets: Students, tech professionals, and relocated NRIs reporting small foreign assets will get six months’ relief from harsh penalties.
NRIs selling property in India: The resident buyer will now deduct TDS, simplifying compliance and enforcement.
Easier revised return filing: Taxpayers can revise returns up to March 31 by paying a nominal fee, giving more time to correct mistakes.
Check TAX updates below
– Interest awarded by the Motor Accident Claims Tribunal (MACT) to the common man will be exempt from income tax.
– The TCS rate on the sale of overseas tour programme packages is proposed to be reduced to 2%.
– The TCS rate under the Liberalised Remittance Scheme (LRS) for education and medical purposes is proposed at 2%.
– The TDS rate on workforce services will be just 1% or 2%.
-Individuals filing ITR-1 and ITR-2 will be allowed to file their income tax returns up to July 31.
-Interest awarded by the Motor Accident Claims Tribunal (MACT) to the common man will be exempt from income tax.
-The TCS rate on the sale of overseas tour programme packages is proposed to be reduced to 2%.
-The TCS rate under the Liberalised Remittance Scheme (LRS) for education and medical purposes is proposed at 2%.
-The TDS rate on workforce services will be just 1% or 2%.
-Individuals filing ITR-1 and ITR-2 will be allowed to file their income tax returns up to July 31.
-Tax holiday till 2047 for global cloud companies.
-Public capex increased to 12.2 lakh cr. ‘In FY 2026-2027, capex to be increased to Rs. 12.2 lakh crores to continue the growth momentum.’
– FM Nirmala Sitharaman proposes ‘Corporate Mitras’ to help MSMEs’
– To scale up manufacturing in strategic and frontier sectors, the Union Finance Minister proposed to launch:
Biopharma SHAKTI; India Semiconductor Mission (ISM) 2.0; Electronics Components Manufacturing Scheme; Dedicated Rare Earth Corridors in Odisha, Kerala,
Andhra Pradesh and Tamil Nadu; 3 dedicated Chemical Parks; Scheme to revive 200 legacy industrial clusters
– In Budget 2026, Focus on textile expansion plans; textile Stocks that are buzzing
– Union FM Nirmala Sitharaman’s Budget 2026 Speech FM says, “Budget guided by three kartavyas”
– ‘First, accelerate & sustain economic growth’; ‘Second, fulfil aspirations of people’; ‘Align with Sabka Saath, Sabka Vikas’
– “This is the first budget prepared in Kartavya Bhavan, we are inspired by three Kartavya,” says FM Sitharaman in Budget 2026 speech. Stay tuned for what FM says on taxes.
Income Tax Slab Rates for FY 2025–26
Old Income Tax Regime
Income up to Rs 2,50,000 – Nil
Rs 2,50,001 to ₹5,00,000 – 5%
Rs 5,00,001 to Rs 10,00,000 – 20%
Above Rs 10,00,000 – 30%
New Income Tax Regime
Income up to Rs 3,00,000 – Nil
Rs 3,00,001 to Rs 6,00,000 – 5%
Rs 6,00,001 to Rs 9,00,000 – 10%
Rs 9,00,001 to Rs 12,00,000 – 15%
Rs 12,00,001 to Rs 15,00,000 – 20%
Above Rs 15,00,000 – 30%
Old vs New Tax Regime: Which Is Better?
The new tax regime offers more slabs and lower tax rates, which helps reduce the tax burden for many taxpayers.
However, the old tax regime still appeals to those who claim multiple deductions, such as:
HRA
Section 80C investments
Home loan interest
Under the new tax regime, only limited deductions are allowed, such as NPS contributions.
