The Income Tax Act will come into effect from April 1, 2026.
She proposes 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.
FM also Proposes to reduce TCS rate on sale of OCS program package from current 5% and 20% to 2% without any stipulation of amount.
Along with it, she also proposed to reduce TCS rate for pursuing education and medical purposes under the liberalised remittance scheme from 5% to 2%.
The Union Budget 2026-27 presentation also witnessed proposal of a scheme for small taxpayer where a rule-based automated process will enable in obtaining a lower or nil deduction certificate.
Propose the extension of time available for revising returns from Dec. 31 to Mar 31 with the payment of a nominal fee.
She further announced Staggering timeline for filing of returns where Individuals with ITR 1, ITR 2 will continue to file till July 31 and non-audit business cases or trusts are proposed to be allowed time till August 31.