Budget 2026: New Income Tax Act to Simplify Tax System, No Slab Changes Now

• Union Finance Minister Nirmala Sitharaman announced a new Income Tax Act 2025, effective April 2026, to simplify the tax system.
• No changes were made to the existing income tax slabs in the current budget.
• Income from share buybacks will now be subject to capital gains tax for all shareholders.
• Penalties introduced for non-disclosure of assets (other than immovable property) and 100% tax penalty for misreporting.
• TDS mandatory on property sales by NRIs; 6-month window for small taxpayers to declare foreign assets.

Why It Matters: A new Income Tax Act 2025 will be implemented from April 2026 to simplify the tax system.