Union Budget 2026-27: Centre Notifies Finance Act, 2026

The Central Government has notified the Finance Act, 2026, giving statutory effect to the budget proposals for the financial year 2026-27 after receiving presidential assent on March 30, 2026.

The Act, published in the Gazette of India, states, "An Act to give effect to the financial proposals of the Central Government for the financial year 2026-27.”

Most provisions of the legislation will come into force from April 1, 2026, including those relating to income-tax rates and amendments to tax laws, while a limited set of provisions dealing with implementation and administrative matters will be brought into effect on dates to be notified separately.

The Act lays down the rates of income tax for the assessment year beginning April 1, 2026. It provides that income tax shall be charged under the Income-tax Act, 1961 at the rates specified in the First Schedule, along with applicable surcharge.

For individuals, the basic exemption limits remain structured by category, including Rs 2.5 lakh for most individuals, Rs 3 lakh for senior citizens, and Rs 5 lakh for super senior citizens, as reflected in the rate tables.

The act also continues the levy of surcharge based on income slabs and mandates an additional 4% “Health and Education Cess” on the amount of income tax and surcharge, intended to fund government expenditure on health and education.