Income Tax Slabs Budget 2026 Key Points: FM Nirmala Sitharaman keeps tax slabs unchanged, introduces foreign asset disclosure scheme for small taxpayers

Income Tax Slab Union Budget 2026-27 Live Updates: Does the proposed amendment include interest awarded by the Motor Vehicle Claims Tribunal?

Yes, the proposed provision covers the interest awarded by the Motor Vehicle Claims Tribunal, as stated by the Income Tax department.

Income Tax Slab Union Budget 2026-27 Live Updates: What are the applicable conditions for availing such exemption?

The only requirement under the proposed provision is that such interest income is awarded by the Motor Vehicle Claims Tribunal under the Motor Vehicles Act, 1988, by an individual.

Income Tax Slab Union Budget 2026-27 Live Updates: Who would be eligible to claim such exemption?

An individual or his legal heir would be the eligible person to claim such exemption.

Income Tax Slab Union Budget 2026-27 Live Updates: What amendment has been proposed in the Income-tax Act, 2025, regarding provisions under the Motor Vehicles Act, 1988?

A new provision has been introduced to exempt interest income awarded under the Motor Vehicles Act, 1988, to individuals or their legal heirs from income tax.

Income Tax Slab Union Budget 2026-27 Live Updates: Tax reforms and infra push positive, STT hike a market concern

Commenting on the Budget 2026, Akshay Gupta, Director, Prime Securities Ltd, said, "The budget aims to balance critical sector infrastructure requirements by providing incentives with fiscal prudence as indicated in the debt to GDP numbers.

According to him, the 3 great positives are:

1) rationalisation in Income tax processes and assessments

2) rationalisation of TCS and TDS for overseas expenses/remittances and NRI property sale

3) focus on Critical minerals, semi-conductors, Agri infrastructure and fisheries.

The two negative reaction triggering aspects specifically for markets are 1) STT increase in derivatives-space (in line with SEBI report on retail investor losses) impacting equity markets and higher than expected Government borrowings impacting debt markets."

Income Tax Slab Union Budget 2026-27 Live Updates: What change is proposed for small taxpayers under the Finance Bill, 2026?

For small taxpayers, applications for certificates allowing lower or nil tax deduction will now be submitted electronically to the prescribed income-tax authority. The authority will review these applications online and either issue the certificate if the required conditions are met or reject the application if conditions are not fulfilled or the application is incomplete.

Income Tax Slab Union Budget 2026-27 Live Updates: What is the present provision under the Income-tax Act, 2025 for obtaining a certificate for lower or nil deduction of income tax?

Under the current provisions, the payee must apply to the Assessing Officer for such a certificate. After reviewing the application, the Assessing Officer issues the certificate if satisfied that the recipient’s total income justifies a lower rate or no tax deduction. The same process applies for both small and large amount cases.

Income Tax Slab Union Budget 2026-27 Live Updates: What is a Tax Holiday? FM Sitharaman proposes tax holiday until 2047 to promote data centres

A tax holiday is a temporary government incentive that reduces or eliminates specific taxes—such as corporate income tax, property tax, or sales tax—for a defined period. Designed to stimulate economic activity, it encourages investment in new industries, supports startups, or boosts consumer spending by lowering tax burdens.

FM Sitharaman proposed a tax holiday until 2047 for any foreign company providing cloud services globally using data centre services from India. However, these companies must serve Indian customers through an Indian reseller entity, she clarified while presenting the Budget in Parliament.

Income Tax Slab Union Budget 2026-27 Live Updates: New Income Tax Act to take effect from April 2026

The Union Finance Minister Nirmala Sitharaman said that the Income Tax Act, 2025, will come into effect from April 1, 2026. She added that simplified tax rules and new return forms will be notified soon, giving taxpayers time to adjust to the changes.

Income Tax Slab Union Budget 2026-27 Live Updates: TDS on sale of immovable property

TDS on the sale of immovable property by a non-resident is proposed to be deducted and deposited through the resident buyer’s PAN-based challan instead of requiring a TAN.

 Income Tax Slab Union Budget 2026-27 Live Updates: Key tax announcements at a glance – Budget 2026

1)Overseas tour TCS: TCS on overseas tour packages cut to 2% (from 5–20%)

2)Share buybacks: Buybacks to be taxed as capital gains for all shareholders

3)Property sale by NRIs: TDS to apply on sale of immovable property by non-residents

4)Capital markets (STT): STT on futures raised to 0.05%

5)Revised returns: Deadline extended till March 31, with a small fee

6)ITR timelines: TR-1 and ITR-2 filing deadline continues as July 31

7)Misreporting penalty: Penalty for misreporting income raised to 100% of tax amount

8)Non-disclosure penalty: Non-disclosure of non-immovable property now attracts penalty

9)Foreign asset disclosure: Six-month disclosure scheme for small taxpayers

10)Safe harbour tenure: Valid for five years at a stretch, at taxpayer’s choice

11)APA timelines: Government to conclude APAs for IT services within two years

12)Cloud services tax holiday: Tax holiday till 2047 for foreign firms providing cloud services via Indian data centres

13)Cloud services condition: Indian customers must be served through an Indian reseller entity

Income Tax Slab Union Budget 2026-27 Live Updates: Non-disclosure of non-immovable property to attract penalty

Finance Minister Nirmala Sitharaman announced that failure to disclose non-immovable assets will now be subject to a penalty, tightening compliance and ensuring taxpayers report all their holdings.

Income Tax Slab Union Budget 2026-27 Live Updates: FM hikes securities transaction tax on futures to 0.05% in Budget 2026

Income Tax Slab Union Budget 2026-27 Live Updates: Stricter penalty for non-disclosure; co-op dividend deduction proposed under new regime

Finance Minister Nirmala Sitharaman announced that non-disclosure of non-immovable assets, which earlier did not attract any penalty, will now be subject to penalties. The move is aimed at tightening tax compliance.

She also proposed a relief measure for cooperatives, saying that dividend income received from inter-cooperative societies will be allowed as a deduction under the new tax regime, provided the dividend is further passed on to members. The proposal seeks to avoid double taxation within the cooperative structure.

Income Tax Slab Union Budget 2026-27 Live Updates: One-Time Asset Disclosure Window for Small Taxpayers

FM Nirmala Sitharaman has announced a special one-time, six-month asset disclosure scheme for small taxpayers, including students, young professionals, tech workers, and relocated NRIs. It is aimed at:

(1) those who did not disclose income or assets, and

(2) those who disclosed income and/or paid taxes but did not report assets acquired.

Eligible taxpayers can submit revised returns by 31 March and, by paying a fee of ₹1 lakh, will receive immunity from penalties and prosecution.

Income Tax Slab Union Budget 2026-27 Live Updates: Scheme to be introduced for small taxpayers

FM Nirmala Sitharaman has said that a scheme will be introduced for small taxpayers, allowing them to file revised returns until 31 March by paying a nominal fee. The deadline for filing ITR‑1 and ITR‑2 will continue to be 31 July.

Income Tax Slab Union Budget 2026-27 Live Updates: Share buybacks to be taxed as capital gains for all investors

Finance Minister Nirmala Sitharaman announced that share buybacks will now be taxed as capital gains across all categories of shareholders. The change marks a shift in how buybacks are taxed and brings their treatment in line with other equity income, such as share sales. The move aims to simplify and standardise the taxation of corporate payouts.

 Income Tax Slab Union Budget 2026-27 Live Updates: No change in income tax slabs, FM Sitharaman confirms

Finance Minister Nirmala Sitharaman announced that there will be no change in income tax slabs or rates under both the new and old tax regimes for FY 2026–27. She added that more tax-related updates will follow as the Budget speech continues.

 Income Tax Slab Union Budget 2026-27 Live Updates: FM Sitharaman proposes rule-based automated system to ease compliance for small taxpayers

Income Tax Slab Union Budget 2026-27 Live Updates: TDS to apply on property sales by non-residents; 6-month foreign asset disclosure window announced

Finance Minister Nirmala Sitharaman announced that Tax Deducted at Source (TDS) will now be applicable on the sale of property by non-residents. The move is aimed at improving tax compliance in real estate transactions involving overseas sellers.

She also unveiled a six-month foreign asset disclosure scheme for small taxpayers, giving them a one-time opportunity to declare overseas assets within a limited window. The scheme is intended to encourage voluntary compliance and help taxpayers regularise past disclosures without prolonged penalties.

Income Tax Slab Union Budget 2026-27 Live Updates: Tax relief on motor accident claim interest

Union FM Nirmala Sitharaman proposes exemption of income tax and TDS on interest awarded by motor accident claims tribunal to individuals

Income Tax Slab Union Budget 2026-27 Live Updates: ITR revision deadline extended till March 31; July 31 filing date unchanged

Finance Minister Nirmala Sitharaman announced that taxpayers will get more time to revise their income-tax returns, with the revision window now extended till March 31, subject to payment of a nominal fee. She clarified that the existing deadline of July 31 for filing ITR-1 and ITR-2 will remain unchanged. The move is aimed at giving taxpayers extra time to correct errors without affecting the regular filing schedule.

Income Tax Slab Union Budget 2026-27 Live Updates: Income Tax Act 2025 to come into effect from 1 April, says FM Nirmala Sitharaman

Income Tax Slab Union Budget 2026-27 Live Updates: Overseas tour TCS cut to 2 per cent; simplified income tax rules coming soon

Finance Minister Nirmala Sitharaman announced that simplified income tax rules will be notified shortly. She also said the Tax Collected at Source (TCS) on overseas tour packages will be reduced to 2 per cent, bringing it down from the earlier range of 5 per cent to 20 per cent. The move is expected to ease the tax burden on individuals travelling abroad and simplify compliance for taxpayers.

Income Tax Slab Union Budget 2026-27 Live Updates: Budget opens wider equity investment window for overseas individuals

In Budget 2026, the government has signalled a move to broaden participation in Indian equity markets and attract more long-term capital. Finance Minister Nirmala Sitharaman announced that individuals resident outside India, known as Persons Resident Outside India (PROIs), will now be allowed to invest directly in equity instruments.

She also said the investment limit for an individual PROI will be increased from 5 per cent to 10 per cent, while the overall investment cap for all such overseas individuals will rise to 24 per cent from the current 10 per cent. The move is expected to boost foreign capital inflows and deepen India’s equity markets.

Income Tax Slab Union Budget 2026-27 Live Updates:​ Investment limit for NRIs increased from 5% to 10%

Income Tax Slab Union Budget 2026-27 Live Updates: Individual residents living outside India will be allowed to invest in Indian equities

In a major move, Sitharaman said individual residents living outside India will be allowed to invest in Indian equities.

Income Tax Slab Union Budget 2026-27 Live Updates: Any tax relief for the middle class?

Finance Minister Nirmala Sitharaman has begun her Budget speech. The middle class is hopeful and looking forward to announcements on direct tax changes, which will soon clarify what relief, if any, is in store for taxpayers.

Income Tax Slab Union Budget 2026-27 Live Updates: India aims for Vikasit Bharat, says FM Sitharaman

Finance Minister Nirmala Sitharaman said India will continue moving confidently towards Vikasit Bharat, focusing on growth while keeping inclusion in mind. She added that as the economy grows, India needs to invest globally, export more, and attract stable long-term investment, staying closely connected with international markets.

Income Tax Slab Union Budget 2026-27 Live Updates: FM Sitharaman sets three ‘Kartavya’ priorities in Budget 2026

Finance Minister Nirmala Sitharaman said the Budget draws inspiration from Prime Minister Narendra Modi, calling it a “unique… Shakti-driven” plan. She acknowledged that India faces a tough global environment but emphasized confident steps to boost productivity and sustain economic growth.

Sitharaman highlighted three main “kartavya” priorities for the Budget:

1) Accelerate and sustain economic growth

2) Fulfil people’s aspirations and build capacity

3) Ensure every family, community, and region has access to resources

Income Tax Slab Union Budget 2026-27 Live Updates: Union Finance Minister Nirmala Sitharaman presents her ninth consecutive Union Budget

 Income Tax Slab Union Budget 2026-27 Live Updates: During FM Nirmala Sitharaman’s Budget speech, we’ll be keeping an eye on key updates that affect your wallet—like income tax slabs, exemption limits, rebates, and deductions. Any change here could impact how much tax you pay for FY 2026–27.

Budget 2026 Income Tax Live Updates: Union Cabinet approves the Budget 2026-2027

Budget 2026 Income Tax Live Updates: All eyes on Budget 2026 Part B: Tax changes that hit your wallet

Salaried taxpayers are focused on Part B (taxation) of FM Nirmala Sitharaman’s Budget speech. This section usually brings the “kitchen-table” announcements—income tax slabs, standard deduction, TDS/TCS updates, capital gains rules, and other fine print that directly affects your take-home pay. Today could reveal whether your salary truly gets a boost or not.

Budget 2026 Income Tax Live Updates: Cabinet meeting begins

The Union Cabinet meeting has started, where the Budget will receive formal approval.

Budget 2026 Income Tax Live Updates: Zero tax up to Rs 12 lakh: How Section 87A works

Section 87A is the reason why income up to Rs 12 lakh is effectively tax-free under the new regime. It doesn’t just depend on tax slabs; the rebate reduces the tax payable after calculation, helping prevent a sudden jump in tax for those earning just above the limit. Any change to this rebate can quietly decide who pays tax and who doesn’t.

Budget 2026 Income Tax Live Updates: Old vs new tax system – it’s about maths, not choice

The new tax system has lower rates but fewer tax breaks, while the old system lets you claim deductions like HRA, home loan interest, and Section 80C, but taxes are higher. The old system only helps if you have big deductions. Budget 2026 will show if the government wants to strengthen the new system or slowly phase out the old one.

Budget 2026 Income Tax Live Updates: Middle class may need to lower expectations

The Economic Survey indicates that middle-class taxpayers may not see repeated income tax relief, as much of the benefit has already been provided in the past budget. However, economists remain divided on whether small changes to tax slabs or deductions could still happen.

Budget 2026 Income Tax Live Updates: What is fiscal deficit?

In simple terms, a fiscal deficit happens when the government spends more than it earns from taxes and other sources. While higher spending can boost growth and support the economy, it also leads to more borrowing, which needs to be kept under control.

Budget 2026 Income Tax Live Updates: Fiscal deficit better than expected

The Survey said India’s fiscal deficit stood at 4.8 per cent of GDP, slightly below the budgeted 4.9 per cent. The government has also set a stricter target of 4.4 per cent for FY26, marking a strong improvement from the 9.2 per cent recorded in FY21 during the pandemic.

Read More: Budget 2026 in hours: Economic Survey signals limited room for fresh income tax cuts

Budget 2026 Income Tax Live Updates: Middle class demands relief from the 30% tax slab

Salaried taxpayers are loudly calling for a rise in the 30 per cent tax slab, which now hits anyone earning above Rs 24 lakh. With salaries and living costs going up, people want the government to push this limit higher so they can keep more of their hard-earned money.

Budget 2026 Income Tax Live Updates: Limited scope for new income tax cuts

With FM Nirmala Sitharaman set to present the Union Budget 2026 in a few hours,  the Economic Survey released on January 29 gives an early indication on the income tax expectations.

The Survey highlights that the government has already provided significant tax relief to households in recent budgets. This indicates that there may be little room for any major new income tax cuts in Budget 2026.

Budget 2026 Income Tax Live Updates: Will home loan tax benefits come to the new regime?

Salaried people hope that the home loan interest deduction for their own homes might be allowed under the new tax system. If this happens, it will make switching from the old tax system easier, without losing one of the biggest tax breaks on home loans.

Budget 2026 Income Tax Live Updates: Salaried people expect HRA exemptions to match real rents

Salaried employees are hoping for an update to House Rent Allowance (HRA) rules, as the current exemption rates—50% for metros and 40% for non-metros—no longer match the actual rents in many Tier-2 cities, where housing costs are now comparable to metro cities.

Budget 2026 Income Tax Live Updates: FM Nirmala Sitharaman leaves for Rashtrapati Bhavan

Finance Minister Nirmala Sitharaman has departed for Rashtrapati Bhavan to seek the President’s formal approval to present the Union Budget 2026.

She is dressed in a traditional Kanchipuram saree crafted in Tamil Nadu.

Following the President’s approval, the Budget will be formally cleared at a Cabinet meeting in Parliament House.

Budget 2026 Income Tax Live Updates: FM Nirmala Sitharaman arrives at Kartavya Bhawan

Finance Minister Nirmala Sitharaman arrives at Kartavya Bhawan ahead of her ninth consecutive Union Budget presentation.

Budget 2026 Income Tax Live Updates: Standard deduction may be raised to Rs 1 lakh

Taxpayers are closely tracking a possible increase in the standard deduction under the new tax regime to Rs 1 lakh from the current Rs 75,000. Such a move would offer direct tax relief without reintroducing multiple exemptions or complicating the system.

Budget 2026 Income Tax Live Updates: Surcharge rates (FY 2025-26) 

Surcharge is applied progressively based on total income:

Up to Rs 50 lakh-Nil (No surcharge)

Rs 50 lakh to Rs 1 crore: 10 per cent

Rs 1 crore to Rs 2 crore: 15 per cent

Rs 2 crore to Rs 5 crore: 25 per cent

Above Rs 5 crore:

New tax regime: 25 per cent

Old tax regime: 37 per cent 

Budget 2026 Income Tax Live Updates: New tax regime slabs: How much tax you pay in FY 2025–26

Under the new tax regime for FY 2025–26, income tax is levied as follows:

Income up to Rs 4 lakh – Nil

Income from Rs 4 lakh to Rs 8 lakh – 5 per cent

Income from Rs 8 lakh to Rs 12 lakh – 10 per cent

Income from Rs 12 lakh to Rs 16 lakh – 15 per cent

Income from Rs 16 lakh to Rs 20 lakh – 20 per cent

Income from Rs 20 lakh to Rs 24 lakh – 25 per cent

Income above Rs 24 lakh – 30 per cent

Budget 2026 Income Tax Live Updates: What is surcharge?

A surcharge in income tax is an additional tax levied on the total income tax payable (not on the gross income itself) for high-income earners whose income exceeds specific thresholds, typically starting above Rs 50 lakh for individuals. It acts as a progressive tax, with higher rates (10 per cent to 37 per cent) applied to higher income brackets.

Budget 2026 Income Tax Live Updates: Income tax slabs under the old tax regime

Under the old tax regime, the income tax rates are as follows:

Income up to Rs 2,50,000 – Nil

Income from Rs 2,50,001 to Rs 5,00,000 – 5 per cent

Income from Rs 5,00,001 to Rs 10,00,000 – 20 per cent

Income above Rs 10,00,000 – 30 per cent

Budget 2026 Income Tax Live Updates: Today in Parliament: FM Sitharaman to present Budget 2026 and Finance Bill

Today, Finance Minister Nirmala Sitharaman will present the Union Budget 2026 in Parliament. She will begin with a statement on the estimated receipts and expenditure of the Government of India for the financial year 2026-27.

She will also lay the Medium-term Fiscal Policy cum Fiscal Policy Strategy Statement and the Macro-economic Framework Statement on the Table, as required under Section 3(1) of the Fiscal Responsibility and Budget Management (FRBM) Act, 2003.

Finally, FM Sitharaman will seek leave to introduce the Finance Bill, 2026 and then formally introduce the Bill in Parliament, marking the start of discussions on the government’s taxation and expenditure plans for the year.

Budget 2026 Income Tax Live Updates: Why the old tax regime still matters

Senior and super senior citizens benefit from higher basic exemption limits under the old tax regime, along with several deductions that many retirees rely on. Any Budget 2026 move that reduces the appeal of the old regime could be politically sensitive and could disrupt households that have planned their finances around these benefits.

Budget 2026 Income Tax Live Updates: Banking parity needed: SBI chief CS Setty calls for fair treatment of deposits

Commenting on the banking sector’s long-standing demand for parity between bank deposits and other financial instruments, SBI Chairman CS Setty said, “As a banker, I would definitely say there should be a level playing field.” However, he noted that fiscal constraints make it difficult to provide preferential treatment for deposits, adding his perspective in an interview with Zee Business.

Budget 2026 Income Tax Live Updates: Tax relief vs tax rebate – What really lowers your tax bill

A tax relief like a deduction or exemption reduces the income on which you pay tax, while a rebate cuts the actual tax you owe. In the new tax system, Section 87A helps make income up to Rs 12 lakh tax-free. Ahead of Budget 2026, people are watching to see if the government will use rebates again to give easy, direct tax savings.

Budget 2026 Income Tax Live: Budget 2025 Tax Highlights

The Budget 2025 made income up to Rs 12 lakh tax-free, with the limit for salaried employees increased to Rs 12.75 lakh. The Section 87A rebate was raised from Rs 25,000 to Rs 60,000, while the minimum slab in the new tax regime went up from Rs 3 lakh to Rs 4 lakh. Additionally, the TDS limit for senior citizens was increased from Rs 50,000 to Rs 1 lakh.

Budget 2026 Income Tax Live Updates: Section 87A – Could the Rs 12 lakh limit rise?

Currently, the Section 87A rebate makes taxable income up to Rs 12 lakh (Rs 12.75 lakh for salaried taxpayers, including standard deduction) effectively tax-free. Tax experts suggest this threshold could be increased to Rs 15 lakh, as rebates directly reduce the tax payable, offering clean and targeted relief without changing the existing income tax slab structure.

Budget 2026 Income Tax Live: Standard deduction: The easiest way taxpayers could get relief in Budget 2026

The standard deduction is one of the easiest tax benefits, as it requires no paperwork or claims. Currently, it stands at Rs 75,000 for salaried employees and pensioners under the new regime (and Rs 50,000 under the old regime). Many tax experts expect a possible increase in this deduction in Budget 2026, since it provides direct relief without complicating the system with multiple exemptions and documentation.

Budget 2026 Income Tax Live: Budget 2026 likely to focus on cleanup, not new tax freebies

Following last year’s significant relief, which made income up to Rs 12 lakh (Rs 12.75 lakh for salaried taxpayers) tax-free, experts expect Budget 2026 to focus on strengthening the system rather than introducing new tax cuts. The government is likely to prioritize removing outdated rules, fixing anomalies, and simplifying compliance. This strategy aims to build on existing reforms while keeping the tax framework stable and predictable for all taxpayers.

Budget 2026 Income Tax Live Updates: Taxation on sale of gold

Taxation on Sovereign Gold Bonds (SGBs) depends on how and when they are sold or redeemed. If SGBs are held till maturity and redeemed after eight years, the capital gains are completely tax-free. Even in the case of premature redemption after five years through the RBI, the gains remain exempt from tax. However, if an investor sells SGBs on the stock exchange, capital gains tax applies. Sales within 12 months are treated as short-term gains and taxed according to the individual’s income tax slab. If sold after 12 months on the exchange, the gains are considered long-term and taxed at 12.5 per cent.

Budget 2026 Income Tax Live Updates: Section 80C limit unchanged since 2014

The deduction limit under Section 80C (renamed Section 123 under the Income Tax Act, 2025) has remained unchanged at Rs 1.5 lakh since Budget 2014, say Industry experts. Section 80C allows tax benefits on popular savings and expenses such as life insurance premiums, ELSS mutual funds, PPF, senior citizen savings schemes, home loan principal repayment, and children’s tuition fees. With inflation rising steadily over the past decade and a wide range of eligible investments, tax experts believe the government may increase the limit to Rs 2 lakh in Budget 2026.

Budget 2026 Income Tax Live Updates: What time does Budget 2026 begin?

Finance Minister Nirmala Sitharaman will present the Union Budget 2026 in Parliament on Sunday, February 1, 2026, starting at 11:00 AM. The Budget Session of Parliament began on January 28, with the Economic Survey tabled on January 29. Both BSE and NSE will hold special live trading sessions on Budget day. Viewers can watch the Budget speech live on Sansad TV, DD News, and other news channels.