Union Budget 2026-27 Proposes 'Corporate Mitras' To Support MSME Compliance
The Union Budget 2026–27 on Sunday proposed the creation of a cadre of trained paraprofessionals, referred to as “Corporate Mitras”, to support micro, small and medium enterprises in meeting compliance requirements.
Presenting the Budget, Finance Minister Nirmala Sitharaman said, “The government will facilitate professional institutions such as the Institute of Chartered Accountants of India, Institute of Company Secretaries of India and Institute of Cost Accountants of India to design short-term modular courses and practical tools to develop a cadre of Corporate Mitras, especially in Tier-2 and Tier-3 towns.”
The Union Budget 2026–27 on Sunday proposed allowing individuals resident outside India to invest in equity instruments of listed Indian companies through the Portfolio Investment Scheme, while also raising the permissible holding limits.
Presenting the budget, Finance Minister Nirmala Sitharaman said, “Individual persons resident outside India will be permitted to invest in equity instruments of listed Indian companies through the Portfolio Investment Scheme.”
Union Budget 2026-27: Govt. Proposes Major Push To Promote Ayurveda
While presenting the Union Budget 2026 in the Parliament today, Finance Minister Nirmala Sitharaman has made announcements that are aimed at promotion of India's native healthcare system - Ayurveda and the AYUSH ecosystem, with a focus on infrastructure expansion, quality enhancement, and global integration
As part of the initiative, three new All India Institutes of Ayurveda will be set up across the country. These institutes are aimed at boosting education, research, and clinical practice in Ayurveda, while also improving access to specialised healthcare based on traditional medicine systems.
Interest On Motor Accident Compensation To Be Tax-Free Under Budget Proposal
Interest received on compensation awarded by Motor Accident Claims Tribunals may soon be taken out of the income-tax net.
While presenting the Union Budget 2026–27, Finance Minister Nirmala Sitharaman announced a proposal to exempt such interest from tax and remove the requirement of tax deduction at source.
“I propose that any interest awarded by the Motor Accident Claims Tribunal to a natural person will be exempt from income tax, and any TDS on this account will be done away with,” Sitharaman told Parliament during her speech on direct tax proposals.
Budget 2026-27 Proposes Sharp Cuts In TCS On Overseas Travel, Education And Medical Remittances
The Union Budget 2026–27 on Sunday also proposed significant reductions in tax collection at source (TCS) rates on overseas travel and certain foreign remittances.
Presenting the direct tax proposals, Finance Minister Nirmala Sitharaman announced a cut in TCS on foreign tour packages. “I propose to reduce TCS rate on the sale of overseas tour programme packages from the current 5 per cent and 20 per cent to 2 per cent, without any stipulation of amount,” she said.
Budget 2026-27 Proposes Penalty Relief, Decriminalisation And Litigation Reduction In Income Tax Law
The Union Budget 2026–27 on Sunday proposed wide-ranging changes to the income tax penalty and prosecution framework, including immunity schemes, decriminalisation of certain offences and procedural measures to reduce litigation.
Presenting her direct tax proposals, Finance Minister Nirmala Sitharaman said, “Multiplicity of proceedings are a hindrance to the ease of doing business.” She proposed to “integrate assessment and penalty proceedings by way of a common order for both.”
The Finance Minister announced that taxpayers would not face interest liability on penalties during appeals. “There will be no interest liability on the taxpayer on the penalty amount for the period of appeal before the first appellate authority irrespective of the outcome of appeal process,” she said.
Breaking: Budget 2026–27 Keeps Income Tax Slabs And Standard Deduction Unchanged
Finance Minister Nirmala Sitharaman on Sunday presented her ninth Union Budget since taking charge in 2019, keeping income tax slabs under the new tax regime unchanged from changes made last year
The income tax slabs under the new tax regime remain as follows:
Income up to ₹4 lakh – Nil
₹4 lakh to ₹8 lakh – 5%
₹8 lakh to ₹12 lakh – 10%
₹12 lakh to ₹16 lakh – 15%
₹16 lakh to ₹20 lakh – 20%
₹20 lakh to ₹24 lakh – 25%
Above ₹24 lakh – 30%, plus applicable cess.
Budget 2026-27 Proposes Withdrawal Of Select Customs Exemptions, Tariff Simplification
The Union Budget 2026–27 proposed changes to India's customs duty framework aimed at simplifying the tariff structure and reducing long-standing distortions.
Presenting her indirect tax proposals, Finance Minister Nirmala Sitharaman said, “To further simplify the tariff structure, support domestic manufacturing, promote export competitiveness, and correct inversion in duty, I propose to remove certain long-continuing customs duty exemptions on items which are being manufactured in India or where imports are negligible.”
Union Budget 2026–27: Buyback Proceeds To Be Taxed As Capital Gains, Promoters Face Additional Levy
The Union Budget 2026–27 has introduced a significant reform in the taxation of share buybacks by shifting the tax incidence to shareholders and aligning buyback income with the capital gains framework.
Under the new proposal, proceeds received by all categories of shareholders, including retail investors, institutional investors, and foreign shareholders from share buybacks will be taxed as capital gains, instead of being subject to a separate buyback distribution tax at the company level. This marks a departure from the earlier regime, where companies had to bear the tax burden and shareholders largely received tax-exempt income.
The Union Budget 2026–27 presented on Sunday proposed customs duty relief for personal imports and medicines used in the treatment of serious illnesses.
Finance Minister Nirmala Sitharaman said, “To rationalise the customs duty structure for goods imported for personal use, I propose to reduce the tariff rate on all dutiable goods imported for personal use from 20 per cent to 10 per cent.”
The Union Budget 2026–27 on Sunday proposed changes to customs rules governing baggage clearance during international travel to address passenger concerns and align duty-free allowances with current travel patterns.
Presenting the indirect tax proposals, Finance Minister Nirmala Sitharaman said, “I propose to revise provisions governing baggage clearance during international travel to address genuine concerns of passengers.”
Budget Proposes Hike In Securities Transaction Tax On Futures And Options
The Union Budget 2026–27 on Sunday proposed an increase in Securities Transaction Tax (STT) on futures and options trades.
Presenting the Budget, Finance Minister Nirmala Sitharaman announced higher STT rates for derivative transactions. “I propose to raise the STT on Futures to 0.05 per cent from the present 0.02 per cent,” she said.
Budget 2026-27: Centre Proposes MCA–CBDT Panel To Integrate ICDS Into IndAS
The Union Budget of 2026 has proposed the constitution of a Joint Committee of the Ministry of Corporate Affairs and the Central Board of Direct Taxes (CBDT) to incorporate the requirements of the Income Computation and Disclosure Standards (ICDS) into the Indian Accounting Standards (IndAS)
Presently, ICDS governs the computation of taxable income under the Income-tax Act, while IndAS applies to financial reporting by companies. The coexistence of two parallel frameworks has often resulted in mismatches between accounting profits and taxable income. This has led to higher compliance costs, complex reconciliations, and frequent tax disputes.
The Central Government in its Union Budget of 2026, announced a major reform in the insurance sector by raising the Foreign Direct Investment (FDI) from 74 percent to 100 percent, signalling a push to attract long-term foreign capital and deepen insurance penetration in India.
Announcing the measure in her Budget speech, Finance Minister Nirmala Sitharaman said:
“The FDI limit for the insurance sector will be raised from 74 to 100 per cent. This enhanced limit will be available for those companies which invest the entire premium in India. The current guardrails and conditionalities associated with foreign investment will be reviewed and simplified.”
Budget Proposes 14% Minimum Alternate Tax Final Levy For Companies Opting New Regime From April 2026
The Union Budget 2026–27 on Sunday proposed changes to the Minimum Alternate Tax (MAT) regime applicable to companies, to take effect from April 1, 2026, alongside the implementation of the Income Tax Act, 2025.
Presenting the budget, Finance Minister Nirmala Sitharaman said, “I propose to make Minimum Alternate Tax a final tax for companies opting for the new tax regime.”
She further announced a reduction in the rate, stating, “The MAT rate is proposed to be reduced to 14 per cent.”
Union Budget 2026: FM Proposes Major Income Tax Changes
Presenting the Union Budget 2026, the Finance Minister Nirmala Sitharaman proposed the replacement of the Income Tax Act, 1961 with a new Income Tax Act, 2025, to come into force from April 1, 2026, alongside a series of reforms to the direct-tax regime.
The Finance Minister said a comprehensive review of the six-decade-old law, announced in July 2024, had been completed in record time. Simplified Income Tax Rules and new return forms will be notified shortly, with the stated objective that “ordinary citizens can comply without difficulty”.
Budget 2026-27: Govt To Facilitate ICAI, ICSI, ICMAI To Run Short Term Know-How Courses For Youth
The Union Budget 2026 was presented by Finance Minister Nirmala Sitharaman in Parliament today at 11 AM, marking a rare departure from convention, being presented on a Sunday this time.
Among the key announcements aimed at skill development and youth empowerment, the Government stated that it will facilitate leading professional institutions like ICAI, ICSI and ICMAI to design and deliver short-term, modern know-how courses to create a skilled cadre of corporate-ready youth.
Union Budget 2026: FM Proposes Rollout Of Customs Integrated System (CIS) In 2 Years
Presenting the Union Budget 2026, Finance Minister Nirmala Sitharaman announced the rollout of a new Customs Integrated System to overhaul customs processes.
“I propose that a Customs Integrated System will be rolled out in two years as a single, integrated and scalable platform for all customs processes,” Sitharaman said.
The Finance Minister also announced expanded use of technology for cargo examination. “Utilisation of non-intrusive scanning with advanced imaging and AI technology for risk assessment will be expanded in a phased manner,” she said, adding that this would be done “across all the major ports”.
Union Budget 2026-27: Fiscal Snapshot and Key Announcements
The Union Budget 2026–27 outlined the government's spending and reform priorities for the coming financial year. The fiscal deficit for FY 2026–27 has been estimated at 4.3% of GDP, compared to 4.4% in the revised estimate for FY 2025–26. The Centre's debt-to-GDP ratio is projected at 55.6%, with a stated target of bringing it down to around 50% by 2030.
The Union Government in its Budget fior the fiscal years 2026-27 announced the establishment of BharatTradeNet (BTN), a new digital public infrastructure for international trade, aimed at simplifying and modernising India's trade ecosystem.
Any Delay In Income Tax Audit Report May Attract ₹75,000 Late Fee, Proposes Finance Bill 2026
A single day's delay in furnishing a tax audit report may attract a fee of ₹75,000 under the proposed Income-tax Act, 2025, as per the scheme set out in the Finance Bill, 2026.
The Finance Bill, 2026 was presented in Parliament by Finance Minister Nirmala Sitharaman on Sunday.
Under the existing law, failure to comply with tax audit requirements attracted a penalty linked to turnover, capped at ₹1.5 lakh, and the penalty could be waived if the taxpayer showed a reasonable explanation for the delay.
Budget 2026-27: Centre Set Up High-Level Committee To Review The Banking Sector
Presenting the Union Budget 2026 in the Lok Sabha on Sunday, Finance Minister Nirmala Sitharaman announced a series of measures for the financial sector, including the setting up of a high-level committee to review banking, restructuring of key public sector NBFCs, and reforms to foreign investment and bond market frameworks.
The Finance Minister said the Indian banking sector is currently marked by strong balance sheets, historic highs in profitability, improved asset quality and coverage, and outreach to more than 98 percent of villages across the country. “At this juncture, we are well placed to futuristically evaluate the measures needed to continue on the path of reform-led growth of this sector,” she said.
Budget 2026-27: No TAN Needed For Resident Buyers To Deduct TDS On Property Purchases From NRIs
As per a proposal in the Union Budget 2026 tabled by Finance Minister Nirmala Sitharaman today, resident individuals and Hindu Undivided Families (HUFs) purchasing immovable property from a non-resident (NRI) will no longer be required to obtain a Tax Deduction and Collection Account Number (TAN) for the purpose of deducting tax at source.
Instead, the tax deducted can be deposited using the Permanent Account Number (PAN) of the buyer.
Budget 2026-27 Proposes Tax Relief On Compensation Received For Compulsory Land Acquisition
In the Union Budget 2026, the Finance Minister has proposed to exempt income in respect of any award or agreement arising from the compulsory acquisition of land under the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013 (RFCTLARR Act) from income tax, with effect from Assessment Year 2026–27.
Under the existing framework, Schedule III of the Income-tax Act provides certain exemptions in respect of capital gains, but does not expressly cover all forms of compensation received on the compulsory acquisition of land.
The Union Government has proposed easing prosecution under the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015, in cases involving non-disclosure of foreign assets, other than immovable property, with an aggregate value of up to ₹20 lakh.
Clause 144 of the Finance Bill, 2026, proposes amendments to the provisos of Sections 49 and 50 of the Black Money Act to provide further that the prosecution provisions “shall not apply in respect of an asset or assets (other than immovable property), where the aggregate value of such asset or assets does not exceed twenty lakh rupees”
Budget 2026-27: Centre Announces ₹10,000 Crore To Boost Domestic Biologics Manufacturing
Presenting the Union Budget 2026 in the Lok Sabha today, Finance Minister Nirmala Sitharaman announced a new Biopharma SHAKTI initiative with an outlay of ₹10,000 crore over the next five years to promote domestic production of biologic medicines and biosimilars.
The outlay was proposed in light of India's disease burden shifting towards non-communicable diseases such as diabetes and cancer.
Announcing the new scheme, Sitharaman said, “India's disease burden is observed to be shifting towards non-communicable diseases like diabetes, cancer and autoimmune disorders. Biologic medicines are key to longevity and quality of life at affordable costs. To develop India as a global biopharma manufacturing hub, I propose the Biopharma SHAKTI with an outlay of ₹10,000 crore over the next five years. This will build the ecosystem for domestic production of biologics and biosimilars.”
Budget 2026-27 Introduces One-Time Disclosure Scheme For Small Taxpayers' Undisclosed Foreign Assets
The Union Budget 2026 has introduced the Foreign Assets of Small Taxpayers Disclosure Scheme, 2026 through the Finance Bill, 2026.
The scheme proposes to offer a one-time opportunity for eligible taxpayers to come forward and declare undisclosed foreign assets or foreign income. On making a valid declaration and payment, taxpayers can obtain immunity from penalty and prosecution under the Black Money law.
The Scheme covers undisclosed assets located outside India as well as undisclosed foreign income that was not reported earlier, was not assessed, or had escaped assessment under the Income-tax Act.
AIDC Levy On Aircraft Tyres To Continue At 0.5 Percent After Budget 2026-27
Finance Minister Nirmala Sitharaman, as part of the Union Budget 2026–27, clarified that new pneumatic tyres of rubber used on aircraft will continue to attract Agriculture Infrastructure and Development Cess (AIDC) at 0.5%. The clarification applies to goods falling under tariff item 4011 30 00.
AIDC is a customs duty levied under Section 124 of the Finance Act, 2021. It is charged on notified imported goods.
At present, Sl. No. 13A of Notification No. 11/2021-Customs prescribes AIDC at 0.5% on pneumatic tyres of rubber used on aircraft.
Budget 2026-27 Revises Excise Valuation For Blended CNG By Excluding Biogas Component
As part of the Union Budget 2026–27, the Centre has proposed changes to how blended Compressed Natural Gas (CNG) is valued for the purpose of central excise duty.
Under the budget proposal, the transaction value used to calculate central excise duty on blended CNG will exclude the value of biogas or compressed biogas (CBG) in the blend. The Central tax, State tax, Union Territory tax, or Integrated tax paid on that biogas or CBG will also be excluded.
This change affects the excise valuation of blended CNG, which continues to be subject to central excise under the residual excise framework.
The Finance Bill, 2026, proposes a key change in the GST treatment of certain cross-border services, especially those provided by Indian intermediaries to overseas clients.
Under the current GST regime, the place of supply for cross-border services is governed by Section 13 of the Integrated Goods and Services Tax (IGST) Act, 2017. This section applies when either the supplier or the recipient of a service is located outside India.
At present, Section 13(8)(b) of the IGST Act lays down a special rule for intermediary services. It treats the place of supply as the location of the supplier, which in most cases is in India. Because of this, even services provided by Indian intermediaries to foreign customers are treated as supplied within India.
Budget 2026-27: Centre Proposes Seven New High-Speed Rail Corridors Linking Major Cities
Presenting the Union Budget 2026 in the Lok Sabha on February 1, 2026, the Finance Minister announced plans to develop seven high-speed rail corridors between major cities as growth connectors.
The proposed corridors are Mumbai–Pune, Pune–Hyderabad, Hyderabad–Bengaluru, Hyderabad–Chennai, Chennai–Bengaluru, Delhi–Varanasi and Varanasi–Siliguri.
The Finance Minister said the high-speed rail corridors would be developed to promote environmentally sustainable passenger systems.
The Union Budget 2026 has proposed an income-tax exemption for foreign companies supplying capital goods, equipment, or tooling to Indian electronic goods manufacturers operating in customs bonded warehouses under Section 65 of the Customs Act, 1962.
At present, Section 11 read with Schedule IV of the Income-tax Act specifies categories of income that are excluded from the total income of eligible non-residents, foreign companies, and specified persons. To promote electronic goods manufacturing in India and provide tax certainty to foreign suppliers, the government has proposed to amend Schedule IV to extend a specific exemption to foreign companies supplying capital goods, equipment or tooling to Indian contract manufacturers
Budget 2026–27 Allocates ₹1,200 Crore For E-Courts Phase III Implementation
The Union Budget 2026–27 has allocated ₹1,200 crore for the implementation of the e-Courts project (Phase III) under the National Mission for Justice Delivery and Legal Reforms, as per the Expenditure Budget.
The allocation remains unchanged from 2024–25, when ₹1,200 crore was earmarked, with the funding provided under the Ministry of Law and Justice.
Budget 2026-27 Proposes 12-Month Window From Assessment Year End To File Revised Income Tax Returns
As per the proposals in the Union Budget 2026–27, the government has proposed extending the time limit for filing a revised income tax return from the existing nine months to twelve months from the end of the relevant assessment year.
At present, the deadlines for filing a belated return under Section 139(4) and a revised return under Section 139(5) coincide, both expiring nine months from the end of the relevant assessment year. As a result, taxpayers who file a belated return towards the end of the permitted period do not get an opportunity to revise their return.
Cigarettes Turn Costlier From Today As 40% Sin Tax Kicks In
Cigarettes will get 40% costlier from today, as higher taxes on tobacco products notified by the Union government take effect from February 1, 2026.
The Ministry of Finance had issued the notification on December 31, 2025, replacing the GST compensation cess with a 40 per cent sin tax under the Central Excise (Amendment) Bill, 2025. While the notification was issued earlier, the revised levy becomes applicable from today.
The notification also raises the GST rate on tobacco and related products from 28 per cent to 40 per cent. The revised rate applies to cigarettes, cigars, pan masala, manufactured and reconstituted tobacco, tobacco extracts, and inhalation products containing tobacco or nicotine substitutes.
Presenting the Union Budget 2026, the Centre announced a renewed push to manufacturing and industrial policy, including a new phase of the semiconductor mission, enhanced support for electronics manufacturing, rare earth processing and domestic chemical production.
On the semiconductor sector, Finance Minister Nirmala Sitharaman said that India's Semiconductor Mission 1.0 had expanded domestic capabilities. “Building on this, we will launch ISM 2.0 to produce equipment and materials, design full stack Indian IP and fortify supply chains,” she said.
She added that the government would focus on industry-led research and training centres to develop technology and a skilled workforce.
Finance Bill, 2026 Proposes Enabling GST Appellate Tribunal To Hear Advance Ruling Appeals
The Finance Bill, 2026, proposes a change in the GST appellate framework that will allow the Goods and Services Tax Appellate Tribunal to hear a limited category of advance ruling appeals.
GSTAT will continue to function as the appellate forum for regular GST disputes such as classification, valuation, and input tax credit. The proposed change does not alter this role.
Under the GST law, advance rulings are issued by state-level Authorities for Advance Rulings. Appeals lie before the respective state appellate authorities. When different states give conflicting advance rulings on the same issue, the law provides for a national forum to settle the dispute.