Budget 2026: Finance Minister Nirmala Sitharaman on Sunday, February 1, presented the Union Budget 2026, a speech that taxpayers across the country had been waiting for over the past few weeks. However, the Budget brought disappointment for many salaried individuals and middle-class citizens, as no relief was announced on income tax rates or slabs.
This year’s Budget did not offer any reduction in income tax, nor were there changes to the existing tax slabs, standard deduction, or exemptions under the new tax regime. Many taxpayers had expected some major announcements after the relief measures announced in last year’s Budget.
FM Sitharaman presented her ninth consecutive Union Budget, marking a historic moment. While the Budget included several reforms and announcements for different sectors of the economy, direct tax changes were largely focused on simplifying processes rather than reducing tax burden.
On the income tax front, the Finance Minister confirmed that the new Income Tax Act, 2025 will be implemented from April 1, 2026. She said the rules and income tax return (ITR) forms under the new law will be notified soon.
However, she made it clear that income tax rates and slabs will remain unchanged. Under the new tax regime, income up to Rs 4 lakh continues to be exempt, with gradual slab rates applying thereafter and a maximum tax rate of 30 per cent on income above Rs 24 lakh.
While there were no tax rate changes, the Finance Minister announced some important relief measures related to income tax filing. One key announcement was the extension of the deadline for revising income tax returns. Taxpayers will now be able to revise their ITRs until March 31 of the relevant assessment year, instead of the earlier deadline of December 31, by paying a nominal fee.
In addition, the timelines for filing original ITRs have been staggered. Individuals filing ITR-1 and ITR-2 will continue to have time until July 31, while non-audit business cases and trusts will be allowed to file returns until August 31.
