Union Budget 2026: Income Tax – Key Takeaways

👉 No change in income-tax slabs, but multiple relief measures introduced to reduce compliance burden, litigation, and cash-flow stress.

🔑 Big Relief Measures Announced

ITR Correction Window Extended

Taxpayers can now revise or correct returns up to 31 March (earlier deadline was tighter).

Helps genuine errors without penalties.

TCS Reduced on Foreign Remittances

Education & medical remittances:

TCS cut from 5% → 2%

Big relief for students and families sending money abroad.

One-Time Foreign Asset Disclosure Window

For small taxpayers who made unintentional disclosure mistakes.

Encourages compliance without fear of prosecution.

Black Money Act – Prosecution Relaxation

No prosecution if:

Foreign assets (excluding immovable property)

Aggregate value ≤ ₹20 lakh

Recognises innocent errors vs wilful evasion.

Appeal Becomes Cheaper

Pre-deposit for appeal reduced

From 20% → 10% of core tax demand

Improves access to justice for taxpayers.

Rule-Based Automation Introduced

Automated tax certificates

Centralised Form 15G / 15H submission

Less paperwork, fewer human interfaces.

New Income Tax Act

To come into force from 1 April 2026

Objective: simpler language, fewer disputes, tech-driven compliance.

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MANOJ ADHYAYI, Sr AI PROJECT MANAGER