Union Budget 2026: New I-T Act to Come Into Force from April 1
Nirmala Sitharaman made history with the presentation of a record ninth consecutive Budget
New Delhi: Finance Minister Nirmala Sitharaman on Sunday announced that the new Income Tax Act will come into force from April 1, 2026, as she presented her ninth consecutive Union Budget in Parliament. However, contrary to expectations from taxpayers, the finance minister did not propose any changes to the existing income tax slabs in the current Budget.
In a relief measure, Sitharaman proposed extending the deadline for filing income tax returns. Under the proposal, taxpayers will be allowed to file their returns up to March 31 instead of the existing December 31 deadline, subject to payment of a nominal fee.
The finance minister also announced a reduction in the Tax Collected at Source (TCS) rate under the Liberalised Remittance Scheme. The TCS on remittances for education and medical education has been proposed to be lowered from 5 per cent to 2 per cent.
Additionally, the TCS rate on the sale of overseas tour packages will be reduced to 2 per cent from the current 5 per cent. The rate had earlier stood at 20 per cent before being revised downward.
Earlier, the Union Cabinet, headed by Prime Minister Narendra Modi, approved the Union Budget 2026-27 following a meeting in Parliament.
Nirmala Sitharaman made history with the presentation of a record ninth consecutive Budget. This will take Sitharaman closer to the record of 10 budgets that were presented by former Prime Minister Morarji Desai over different time periods.
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- 1 Feb 2026 10:47 AM IST
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- 1 Feb 2026 10:41 AM IST
President Droupadi Murmu with Finance Minister Nirmala Sitharaman before the latter presents the ‘Union Budget 2026-27’ in the Lok Sabha, in New Delhi. (@rashtrapatibhvn/X via PTI Photo) - 1 Feb 2026 10:38 AM IST
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- 1 Feb 2026 10:36 AM IST
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- 1 Feb 2026 10:34 AM IST
This Budget too will be another step towards making India a Viksit Bharat, says Union Minister Gajendra Singh Shekhawat
- 1 Feb 2026 10:23 AM IST
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- 1 Feb 2026 10:13 AM IST
Domestic stock markets opened largely flat on Sunday during a special budget session.The Nifty 50 index opened at 25,333.75, registering a marginal gain of 13.10 points or 0.05 per cent, while the BSE Sensex opened at 82,445.97, up by 176.19 points or 0.21 per cent.This marks only the second time in the history of Indian stock markets that trading is taking place on a weekend for a special budget session.
- 1 Feb 2026 9:54 AM IST
Finance Minister Nirmala Sitharaman outside the Ministry of Finance before the presentation of the ‘Union Budget 2026-27’, in New Delhi - PTI
- 1 Feb 2026 9:41 AM IST
Union Finance Minister Nirmala Sitharaman, along with her team, calls on President Droupadi Murmu before presenting her ninth consecutive Union Budget
