Budget 2026: 10 Income Tax Changes to Impact Your Pocket

• A new Income Tax Act, 2025, will replace the 1961 Act from April 1, 2026, aiming for simplification.
• TCS on overseas education and medical treatment under LRS reduced from 5% to 2% from April 1, 2026.
• Deadline for filing revised returns extended from 9 to 12 months, while belated return deadline remains unchanged.
• STT increased on equity futures (0.02% to 0.05%) and options (0.1% to 0.15%), making F&O trading costlier.
• Capital gains tax reinstated on share buybacks, but investors pay tax only on net profit, benefiting long-term investors.

Why It Matters: Budget 2026 introduces a new Income Tax Act and several changes impacting taxpayers' finances.