Income Tax Changes: These 10 changes related to income tax will affect your pocket, know here

 

Budget 2026: Finance Minister Nirmala Sitharaman presented the Union Budget 2026-27 on Sunday. No major announcements were made regarding tax slabs or tax exemptions. However, the Finance Minister did announce several minor changes. Let’s find out how these will impact your pocket…

New Delhi. India’s tax law, which has been in place for over 60 years, is coming to an end. The Finance Minister announced in the budget that the new Income Tax Act, 2025, will come into effect on April 1, 2026, replacing the existing 1961 Act. The government’s aim is to simplify this law so that even ordinary citizens can understand their taxes and file returns without the help of an expert. But the question on everyone’s mind is whether these changes will fill the pockets of ordinary taxpayers or leave them empty? Let’s explore 10 major income tax announcements.

10 Major Income Tax Changes in Budget 2026

1. TCS reduced for education and medical treatment abroad

The TCS on remittances for education and medical expenses under the Liberalized Remittance Scheme (LRS) has been reduced from 5% to 2%. This relief will be effective from April 1, 2026.

The deadline for filing revised returns has been extended from 9 months to 12 months. However, the deadline for belated returns remains the same.

3. STT increased on equity futures and options

The STT on equity futures has increased from 0.02% to 0.05% and on options from 0.1% to 0.15%, making F&O trading more expensive.

4. Tax rules for Sovereign Gold Bonds (SGBs) clarified

Capital gains tax exemption on SGBs held to maturity will now be available only to investors who purchased the bonds in the original RBI issue. SGBs purchased in the secondary market may be taxed.

5. Capital gains tax reinstated on share buybacks

Capital gains tax on share buybacks has been reinstated in Budget 2026. Investors will now only have to pay tax on net profits, providing relief to long-term investors.

6) 6-Month Foreign Asset Disclosure Scheme

A one-time, six-month scheme has been introduced, allowing taxpayers to declare foreign income or assets without litigation. Small taxpayers, salaried individuals, students, and NRIs are covered under this scheme.

7. Clarity on ITR Deadlines

The deadline for ITR-1 and ITR-2 will remain July 31st. Returns can be filed until August 31st for non-audit cases. Revised returns will be filed until March 31st with a nominal fee.

8. Major Relief for Small Taxpayers

Small taxpayers will now be able to obtain lower or nil TDS certificates through an automated system. Additionally, Form 15G/15H will reach companies directly through depositories.

9. Strict Penalties for Not Disclosing Cryptocurrency

Exchanges will be fined ₹200 per day for failing to report crypto transactions, and penalties of up to ₹50,000 for incorrect reporting.

10. Purchasing Property from NRIs Made Easy

Resident buyers will no longer need to obtain a TAN when purchasing property from NRIs. TDS deduction will be possible only through PAN, making the process faster and easier.