{"id":31161,"date":"2026-02-02T00:36:58","date_gmt":"2026-02-01T19:06:58","guid":{"rendered":"https:\/\/carajput.com\/blog\/?p=31161"},"modified":"2026-02-09T13:12:40","modified_gmt":"2026-02-09T07:42:40","slug":"income-tax-proposals-in-the-budget-for-2026-at-a-glance","status":"publish","type":"post","link":"https:\/\/carajput.com\/blog\/income-tax-proposals-in-the-budget-for-2026-at-a-glance\/","title":{"rendered":"Income Tax proposals in the budget for 2026 at a glance"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_58 counter-hierarchy ez-toc-counter ez-toc-light-blue ez-toc-container-direction\">\n<p class=\"ez-toc-title\">Page Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-69d5b286c56d3\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #000000;color:#000000\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #000000;color:#000000\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-69d5b286c56d3\"  aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/carajput.com\/blog\/income-tax-proposals-in-the-budget-for-2026-at-a-glance\/#Income_tax_proposals_in_the_budget_for_2026_at_a_glance\" title=\"Income tax proposals in the budget for 2026 at a glance: \">Income tax proposals in the budget for 2026 at a glance: <\/a><ul class='ez-toc-list-level-3'><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/carajput.com\/blog\/income-tax-proposals-in-the-budget-for-2026-at-a-glance\/#The_REAL_tax_relief_Section_87A_Rebate_%E2%80%93_Increased_to_INR_1200000\" title=\"The REAL tax relief Section 87A Rebate \u2013 Increased to INR 12,00,000\">The REAL tax relief Section 87A Rebate \u2013 Increased to INR 12,00,000<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/carajput.com\/blog\/income-tax-proposals-in-the-budget-for-2026-at-a-glance\/#Old_Tax_Regime%E2%80%94Still_Alive\" title=\"Old Tax Regime\u2014Still Alive\">Old Tax Regime\u2014Still Alive<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/carajput.com\/blog\/income-tax-proposals-in-the-budget-for-2026-at-a-glance\/#TCS_Rationalization_Cash-flow_relief\" title=\"TCS Rationalization Cash-flow relief\u00a0\">TCS Rationalization Cash-flow relief\u00a0<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/carajput.com\/blog\/income-tax-proposals-in-the-budget-for-2026-at-a-glance\/#Business_Deductions\" title=\"Business Deductions\">Business Deductions<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/carajput.com\/blog\/income-tax-proposals-in-the-budget-for-2026-at-a-glance\/#Assessment_Limitation_and_Jurisdiction\" title=\"Assessment, Limitation and Jurisdiction\">Assessment, Limitation and Jurisdiction<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/carajput.com\/blog\/income-tax-proposals-in-the-budget-for-2026-at-a-glance\/#ITR_Due_Dates%E2%80%94Important_Compliance_Relief\" title=\"ITR\u00a0Due Dates\u2014Important Compliance Relief \">ITR\u00a0Due Dates\u2014Important Compliance Relief <\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/carajput.com\/blog\/income-tax-proposals-in-the-budget-for-2026-at-a-glance\/#PAN-Based_TDS_for_NRI_Property_Which_Is_GAME_CHANGER\" title=\"PAN-Based TDS for NRI Property, Which Is GAME CHANGER\">PAN-Based TDS for NRI Property, Which Is GAME CHANGER<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/carajput.com\/blog\/income-tax-proposals-in-the-budget-for-2026-at-a-glance\/#Foreign_Income_and_Assets_One-Time_Foreign_Asset_Disclosure_Scheme\" title=\"Foreign Income and Assets: One-Time Foreign Asset Disclosure Scheme \">Foreign Income and Assets: One-Time Foreign Asset Disclosure Scheme <\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/carajput.com\/blog\/income-tax-proposals-in-the-budget-for-2026-at-a-glance\/#Penalties_%E2%86%92_Fees_%E2%86%92_Immunity\" title=\"Penalties \u2192 Fees \u2192 Immunity\">Penalties \u2192 Fees \u2192 Immunity<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-11\" href=\"https:\/\/carajput.com\/blog\/income-tax-proposals-in-the-budget-for-2026-at-a-glance\/#Corporate_Tax\" title=\"Corporate Tax\">Corporate Tax<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-12\" href=\"https:\/\/carajput.com\/blog\/income-tax-proposals-in-the-budget-for-2026-at-a-glance\/#Investment_and_Capital_Markets\" title=\"Investment and Capital Markets\">Investment and Capital Markets<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-13\" href=\"https:\/\/carajput.com\/blog\/income-tax-proposals-in-the-budget-for-2026-at-a-glance\/#Proposed_amendment_of_buyback_provisions_in_the_budget\" title=\"Proposed amendment of buyback provisions in the budget\">Proposed amendment of buyback provisions in the budget<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-14\" href=\"https:\/\/carajput.com\/blog\/income-tax-proposals-in-the-budget-for-2026-at-a-glance\/#Additional_income_tax_comes_via_Budget_2026\" title=\"Additional income tax comes via Budget 2026 \">Additional income tax comes via Budget 2026 <\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-15\" href=\"https:\/\/carajput.com\/blog\/income-tax-proposals-in-the-budget-for-2026-at-a-glance\/#In_Summary_Budget_2026_heres_a_snapshot_of_the_top_10_changes\" title=\"In Summary Budget 2026, here&#8217;s a snapshot of the top 10 changes\">In Summary Budget 2026, here&#8217;s a snapshot of the top 10 changes<\/a><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<h2><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-full wp-image-31173\" src=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2026\/02\/Budget-for-2026-at-a-glance.jpg\" alt=\"budget for 2026 at a glance\" width=\"1500\" height=\"999\" srcset=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2026\/02\/Budget-for-2026-at-a-glance.jpg 1500w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2026\/02\/Budget-for-2026-at-a-glance-300x200.jpg 300w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2026\/02\/Budget-for-2026-at-a-glance-1024x682.jpg 1024w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2026\/02\/Budget-for-2026-at-a-glance-768x511.jpg 768w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2026\/02\/Budget-for-2026-at-a-glance-800x533.jpg 800w\" sizes=\"(max-width: 1500px) 100vw, 1500px\" \/><\/h2>\n<h2><span class=\"ez-toc-section\" id=\"Income_tax_proposals_in_the_budget_for_2026_at_a_glance\"><\/span><span style=\"color: #000080;\"><strong>Income tax proposals in the <a href=\"https:\/\/carajput.com\/learn\/new-income-tax-slab-rate-for-fy-2026-27-and-ay-2027-28-budget.html\">budget for 2026 at a glance<\/a>: <\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>The Finance Minister, Smt. Nirmala Sitharaman has presented the Union Budget 2026, announcing a series of measures to strengthen tax administration, improve compliance flexibility, and support strategic sectors. <a href=\"https:\/\/carajput.com\/blog\/category\/budget\/\">New Income-tax Act, 2025<\/a>: The new Income Tax Act will come into force from 1 April 2026. Focus on simpler language, cleaner structure, and reduced litigation, and have tax return forms and filing systems redesigned. Following are the Income-Tax Slabs \u2013 FY 2026-27 (AY 2027-28): Default New Tax Regime (Unchanged)<\/p>\n<table style=\"height: 540px;\" width=\"813\">\n<thead>\n<tr>\n<td><strong>Total Income<\/strong><\/td>\n<td><strong>Tax Rate<\/strong><\/td>\n<\/tr>\n<\/thead>\n<tbody>\n<tr>\n<td>Up to INR 4,00,000<\/td>\n<td>Nil<\/td>\n<\/tr>\n<tr>\n<td>INR 4,00,001 \u2013 INR 8,00,000<\/td>\n<td>5%<\/td>\n<\/tr>\n<tr>\n<td>INR 8,00,001 \u2013 INR 12,00,000<\/td>\n<td>10%<\/td>\n<\/tr>\n<tr>\n<td>INR 12,00,001 \u2013 INR 16,00,000<\/td>\n<td>15%<\/td>\n<\/tr>\n<tr>\n<td>INR 16,00,001 \u2013 INR 20,00,000<\/td>\n<td>20%<\/td>\n<\/tr>\n<tr>\n<td>INR 20,00,001 \u2013 INR 24,00,000<\/td>\n<td>25%<\/td>\n<\/tr>\n<tr>\n<td>Above INR 24,00,000<\/td>\n<td>30%<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p>No age-based slabs. Same for everyone. Same as last year.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"The_REAL_tax_relief_Section_87A_Rebate_%E2%80%93_Increased_to_INR_1200000\"><\/span><span style=\"color: #000080;\"><strong>The REAL tax relief Section 87A Rebate \u2013 Increased to INR 12,00,000<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul>\n<li>Tax payable becomes ZERO if taxable income \u2264 INR 12 lakh<\/li>\n<li>For salaried taxpayers, add Standard Deduction = INR 75,000<\/li>\n<li>Effective tax-free salary income = INR 12.75 lakh<\/li>\n<\/ul>\n<ul>\n<li>For the salaried class: Zero tax up to INR 12.75 lakh, and the new regime is the default choice.<\/li>\n<li>For professionals &amp; businesses, ITR extended deadlines and fewer penalties simplify accounting (ICDS separation removed)<strong>. <\/strong><\/li>\n<li>The objective of these change is less litigation, less interpretation, more automation<\/li>\n<\/ul>\n<p>This single change makes the new regime the default winner for most middle-class salaried employees. <a href=\"https:\/\/carajput.com\/blog\/category\/budget\/\">New Income-tax Act, 2025<\/a> (Effective 1 April 2026) : This is bigger than slab changes. Structural Reforms Replaces the 1961 Act, has 50% fewer sections, a single \u201ctax year\u201d concept, and plain-language law also simplified ITR forms (coming soon).<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Old_Tax_Regime%E2%80%94Still_Alive\"><\/span><span style=\"color: #000080;\"><strong>Old Tax Regime\u2014Still Alive<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<table style=\"height: 347px;\" width=\"797\">\n<thead>\n<tr>\n<td><strong>Income<\/strong><\/td>\n<td><strong>Rate<\/strong><\/td>\n<\/tr>\n<\/thead>\n<tbody>\n<tr>\n<td>Up to INR 2.5 lakh<\/td>\n<td>Nil<\/td>\n<\/tr>\n<tr>\n<td>INR 2.5 \u2013 INR 5 lakh<\/td>\n<td>5%<\/td>\n<\/tr>\n<tr>\n<td>INR 5 \u2013 INR 10 lakh<\/td>\n<td>20%<\/td>\n<\/tr>\n<tr>\n<td>Above INR 10 lakh<\/td>\n<td>30%<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p>The rebate ceiling is much lower . Works only if you have heavy deductions (home loan + HRA + 80C + 80D etc.). For most taxpayers earning INR 8\u201315 lakh, the new regime wins hands down.<\/p>\n<h2><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-full wp-image-31162\" src=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2026\/02\/Taxmanns_Analysis_Comparative_Analysis_of_Tax_Liability_under_the_page-0001.jpg\" alt=\"Income tax proposals in the budget for 2026\" width=\"1197\" height=\"1487\" srcset=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2026\/02\/Taxmanns_Analysis_Comparative_Analysis_of_Tax_Liability_under_the_page-0001.jpg 1197w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2026\/02\/Taxmanns_Analysis_Comparative_Analysis_of_Tax_Liability_under_the_page-0001-241x300.jpg 241w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2026\/02\/Taxmanns_Analysis_Comparative_Analysis_of_Tax_Liability_under_the_page-0001-824x1024.jpg 824w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2026\/02\/Taxmanns_Analysis_Comparative_Analysis_of_Tax_Liability_under_the_page-0001-768x954.jpg 768w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2026\/02\/Taxmanns_Analysis_Comparative_Analysis_of_Tax_Liability_under_the_page-0001-800x994.jpg 800w\" sizes=\"(max-width: 1197px) 100vw, 1197px\" \/><\/h2>\n<h3><img loading=\"lazy\" decoding=\"async\" class=\"alignnone wp-image-31164\" src=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2026\/02\/Analysis_Comparative_Analysis_of_Tax_Liability.jpg\" alt=\"Analysis_Comparative_Analysis_of_Tax_Liability_under_\" width=\"877\" height=\"996\" srcset=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2026\/02\/Analysis_Comparative_Analysis_of_Tax_Liability.jpg 1085w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2026\/02\/Analysis_Comparative_Analysis_of_Tax_Liability-264x300.jpg 264w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2026\/02\/Analysis_Comparative_Analysis_of_Tax_Liability-901x1024.jpg 901w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2026\/02\/Analysis_Comparative_Analysis_of_Tax_Liability-768x873.jpg 768w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2026\/02\/Analysis_Comparative_Analysis_of_Tax_Liability-800x909.jpg 800w\" sizes=\"(max-width: 877px) 100vw, 877px\" \/><\/h3>\n<h3><span class=\"ez-toc-section\" id=\"TCS_Rationalization_Cash-flow_relief\"><\/span><span style=\"color: #000080;\"><strong>TCS Rationalization Cash-flow relief\u00a0<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<table style=\"height: 283px;\" width=\"841\">\n<thead>\n<tr>\n<td>Transaction<\/td>\n<td>Old<\/td>\n<td>New<\/td>\n<\/tr>\n<\/thead>\n<tbody>\n<tr>\n<td>Overseas tour packages<\/td>\n<td>5% \/ 20%<\/td>\n<td>2% flat<\/td>\n<\/tr>\n<tr>\n<td>LRS \u2013 Education &amp; Medical<\/td>\n<td>5%<\/td>\n<td>2%<\/td>\n<\/tr>\n<tr>\n<td>Threshold<\/td>\n<td>Yes<\/td>\n<td>No threshold<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<ul>\n<li>Reduces blockage of funds and refund dependency. passive relief for professionals and taxpayers who miss errors late. Simplified procedures for Form 15G and 15H and lower or nil TDS certificates.<\/li>\n<li>Section 115BBE tax on unexplained income under sections 68 to 69D reduced from 60 percent to 30 percent<\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"Business_Deductions\"><\/span><span style=\"color: #000080;\"><strong>Business Deductions<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul>\n<li>Employees\u2019 contribution to PF and ESI allowable if deposited up to due date of filing return<\/li>\n<li>Long-standing disallowance controversy resolved prospectively<\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"Assessment_Limitation_and_Jurisdiction\"><\/span><span style=\"color: #000080;\"><strong>Assessment, Limitation and Jurisdiction<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Section 144C Amendment<\/p>\n<ul>\n<li>Retrospective exclusion of time spent in draft assessment and DRP proceedings for computing limitation under section 153<\/li>\n<li>Judicial rulings such as Rocca Bathroom legislatively neutralised<\/li>\n<li>Time-barred assessments revived<\/li>\n<\/ul>\n<p>Reassessment Jurisdiction<\/p>\n<ul>\n<li>New section 147A inserted retrospectively<\/li>\n<li>Notifications under section 151A overridden<\/li>\n<li>JAO versus FAO controversy settled in favour of revenue.<\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"ITR_Due_Dates%E2%80%94Important_Compliance_Relief\"><\/span><span style=\"color: #000080;\"><strong><a href=\"https:\/\/carajput.com\/blog\/category\/budget\/\">ITR\u00a0Due Dates<\/a>\u2014Important Compliance Relief <\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<table style=\"height: 144px;\" width=\"828\">\n<thead>\n<tr>\n<td><strong>Category<\/strong><\/td>\n<td><strong>Due Date<\/strong><\/td>\n<\/tr>\n<\/thead>\n<tbody>\n<tr>\n<td>ITR-1 \/ ITR-2 (Individuals)<\/td>\n<td>31 July<\/td>\n<\/tr>\n<tr>\n<td>Non-audit Business &amp; Trusts<\/td>\n<td>31 August<\/td>\n<\/tr>\n<tr>\n<td>Revised Return u\/s 139(5)<\/td>\n<td>31 March (earlier 31 Dec)<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<h3><span class=\"ez-toc-section\" id=\"PAN-Based_TDS_for_NRI_Property_Which_Is_GAME_CHANGER\"><\/span><span style=\"color: #000080;\"><strong>PAN-Based TDS for NRI Property, Which Is GAME CHANGER<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Earlier, pain was caused by the mandatory TAN, and one-time buyers struggled badly. Now, no TAN is required &amp; there is a PAN-based challan, which is a simpler TDS deposit and huge compliance relief. PAN-based TDS compliance for NRI property transactions and TAN requirement removed This is one of the most taxpayer-friendly changes in years.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Foreign_Income_and_Assets_One-Time_Foreign_Asset_Disclosure_Scheme\"><\/span><span style=\"color: #000080;\"><strong>Foreign Income and Assets: One-Time Foreign Asset Disclosure Scheme <\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>6-month window for the Foreign Asset Disclosure Scheme, and this scheme is for small taxpayers, students, and NRIs covered, with a penalty-free threshold. Immunity even with retrospective effect from 1-10-2024. A voluntary disclosure scheme for undisclosed foreign income and assets was introduced. Structured tax cost with enhanced penalties outside the scheme. Disclosure is permitted even after reassessment at higher cost. This will significantly reduce Black Money Act litigation.<\/p>\n<p>Appeals, Penalties and Prosecution<\/p>\n<ul>\n<li>The pre-deposit for stay of demand reduced to 10 percent<\/li>\n<li>Tax audit and transfer pricing penalties converted into fixed fees<\/li>\n<li>Prosecution removed for procedural defaults<\/li>\n<li>Maximum imprisonment capped at two years<\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"Penalties_%E2%86%92_Fees_%E2%86%92_Immunity\"><\/span><span style=\"color: #000080;\"><strong>Penalties \u2192 Fees \u2192 Immunity<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul>\n<li>Audit failure \u2192 Fee instead of penalty<\/li>\n<li>Non-production of books \u2192 Decriminalised<\/li>\n<li>Expanded immunity even for misreporting<\/li>\n<li>Honest taxpayers can settle disputes by paying an extra amount. Clear shift from punitive \u2192 facilitative tax administration<\/li>\n<li>Penal intensity diluted while anti-abuse framework retained<\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"Corporate_Tax\"><\/span><span style=\"color: #000080;\">Corporate Tax<\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul>\n<li>MAT not applicable to companies opting for the new corporate tax regime<\/li>\n<li>Corporate tax governed solely by normal computation provisions<\/li>\n<li>Legacy MAT credit preserved with restricted utilisation<\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"Investment_and_Capital_Markets\"><\/span><span style=\"color: #000080;\">Investment and Capital Markets<\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul>\n<li>The tax holiday for data centers is extended till 2047.<\/li>\n<li>The safe harbor margin for transfer pricing fixed at 15 percent<\/li>\n<li>Buyback taxation for minority shareholders aligned with capital gains<\/li>\n<li>Securities Transaction Tax on options increased<\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"Proposed_amendment_of_buyback_provisions_in_the_budget\"><\/span><span style=\"color: #000080;\"><strong>Proposed amendment of buyback provisions in the budget<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>What Finance Bill, 2026 proposes: Key consequences of the shift<\/p>\n<ul>\n<li>Buy-back consideration received by shareholders shall now be taxed under the head \u201cCapital Gains.\u201d It will no longer be characterised as dividend income, as is currently characterised from 1st Oct 2024.<\/li>\n<li>The cost of acquisition becomes relevant: Shareholders can now reduce the buyback price by their cost base, which was irrelevant earlier.<\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"Additional_income_tax_comes_via_Budget_2026\"><\/span><span style=\"color: #000080;\"><strong>Additional income tax comes via <a href=\"https:\/\/carajput.com\/learn\/new-income-tax-slab-rate-for-fy-2026-27-and-ay-2027-28-budget.html\">Budget 2026 <\/a><\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Additional tax comes into the picture after The Finance Bill 2026 mandates an\u00a0 \u201cAdditional Income Tax\u201d for promoters as below:<\/p>\n<ul>\n<li>Promoter is a Domestic Company: The effective tax rate is 22% Short-term Capital Gains (STCG):Normal Rate (20%) + Additional Tax (2%) Long-term Capital Gains (LTCG): Normal Rate (12.5%) + Additional Tax (9.5%)<\/li>\n<li>The promoter is other than a domestic company: the effective tax rate is 30%. STCG: Normal Rate (20%) + Additional Tax (10%). LTCG: Normal Rate (12.5%) + Additional Tax (17.5%).<\/li>\n<li>Effective Tax Rates for Non-Promoters: For shareholders who are not promoters, the consideration received is taxed as normal capital gains without the \u201cAdditional Income Tax\u201d component.<\/li>\n<li>Treaty relief becomes meaningful: Non-resident shareholders can potentially claim capital gains articles under DTAA, which was largely ineffective under dividend characterisation.<\/li>\n<li>Definition of promoter: The definition of &#8220;promoter&#8221; is as defined in SEBI (Buy-Back of Securities) Regulations, 2018, for listed companies and for unlisted Companies, the promoter is defined as per Section 2(69) of the Companies Act, 2013<\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"In_Summary_Budget_2026_heres_a_snapshot_of_the_top_10_changes\"><\/span><span style=\"color: #000080;\"><strong>In Summary <\/strong><strong><a href=\"https:\/\/carajput.com\/learn\/new-income-tax-slab-rate-for-fy-2026-27-and-ay-2027-28-budget.html\">Budget 2026<\/a>, here&#8217;s a snapshot of the top 10 changes<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Rajput Jain and Associates&#8217; observation is spot on Budget 2026 is not just a fiscal event; it resets India\u2019s direct tax architecture like <em>simplified, modern tax law (effective 2026), <\/em><em>Lower litigation &amp; proportionate enforcement, a digitally<\/em><em>\u00a0driven compliance ecosystem, and <\/em><em>global competitiveness and investor-friendliness. these <\/em>India\u2019s direct tax regime is moving decisively toward clarity, predictability, trust and global alignment. However, a few highlights of the budget 2026 are mentioned hereunder:<\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-full wp-image-31182\" src=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2026\/02\/IMpact.jpeg\" alt=\"Impact budget 2026\" width=\"1022\" height=\"1290\" srcset=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2026\/02\/IMpact.jpeg 1022w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2026\/02\/IMpact-238x300.jpeg 238w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2026\/02\/IMpact-811x1024.jpeg 811w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2026\/02\/IMpact-768x969.jpeg 768w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2026\/02\/IMpact-800x1010.jpeg 800w\" sizes=\"(max-width: 1022px) 100vw, 1022px\" \/><\/p>\n<ul>\n<li>Data centre services income exempt till 31 March 2047<\/li>\n<li>Interest deduction disallowed for dividend &amp; MF income<\/li>\n<li>Tax exemption for electronics supply to bonded units<\/li>\n<li>Uniform 2% TCS on liquor, scrap, minerals, LRS &amp; tour packages<\/li>\n<li>Updated return allowed with 10% additional tax post-notice<\/li>\n<li>ITR due date extended to 31 August (non-audit cases)<\/li>\n<li>Revised return window \u2013 9-12 months with fee<\/li>\n<li>Legacy foreign asset disclosure scheme for small taxpayers<\/li>\n<li>Loss reduction permitted in updated return<\/li>\n<li>STT increased on derivative transactions<\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>Income tax proposals in the budget for 2026 at a glance: The Finance Minister, Smt. Nirmala Sitharaman has presented the Union Budget 2026, announcing a series of measures to strengthen tax administration, improve compliance flexibility, and support strategic sectors. New Income-tax Act, 2025: The new Income Tax Act will come into force from 1 April &hellip;<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[9767],"tags":[10422],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/posts\/31161"}],"collection":[{"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/comments?post=31161"}],"version-history":[{"count":5,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/posts\/31161\/revisions"}],"predecessor-version":[{"id":31183,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/posts\/31161\/revisions\/31183"}],"wp:attachment":[{"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/media?parent=31161"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/categories?post=31161"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/tags?post=31161"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}