Union Budget 2026-27 Today: LIVE UPDATES

Quantum of Pre payment is reduced from 20% to 10% and will continue to be calculated only on core tax demand.

To reduce litigation, proposal to allow taxpayers to update the returns even after reassessment proceedings have been initiated at an additional 10% tax rate.

Proposal to integrate assessment and penalty proceedings by way of a common order. No interest liability on the tax pair on the penalty amount for the period of a appeal Before the first appellate authority.

To address practical issues of small taxpayers like students, young professionals, relocated NRI is another's a one time 6 month foreign asset disclosure scheme.

Proposal to stagger timeline for filing income tax returns.

For the ease of tax payers holding securities in multiple companies, proposal to enable depositories to accept form 15 G or form 15 H from the investor .

Propose to reduce TCS rates for pursuing education and for medical purposes under LRS from 5% to 2%.

TCS rates on sale of overseas tour program package from the current 5% and 20% to 2% without any stipulation of amount.

Any interest awarded by the Motor Accident Claims Tribunal to a natural person will be exempt from income tax and any TDS on the account will be done away with.

Direct taxes -

New Income tax Act will come into effect from first April 2026.

Non debt receipts are 34 lakh crores Net tax receipts are 26.7 lakh crore. The revise estimate of the total expenditure is 49.6 lakh crore rupees of which the capital expenditure is about 11 lakh crores.