Budget 2026: Key Tax Changes for Salaried Taxpayers Explained

• Budget 2026 introduces targeted tax changes for middle-class taxpayers, focusing on compliance and streamlining rather than broad tax cuts.
• Existing personal income tax relief for middle-income earners (up to Rs 12 lakh taxable income) remains unchanged, ensuring stability.
• The deadline for filing revised Income Tax Returns (ITRs) is extended to 12 months from the end of the relevant tax year, with a fee for filings after nine months.
• Tax Collected at Source (TCS) on overseas tour packages is rationalized to a uniform 2% without a Rs 10 lakh threshold.
• TCS under LRS for education and medical purposes is reduced to 2% (with a Rs 10 lakh threshold), and interest on motor accident compensation is fully tax-exempt.

Why It Matters: Budget 2026 brings targeted tax adjustments, offering relief in compliance, TCS, and accident compensation for taxpayers.