Union Budget 2026: No Income Tax on Financial Compensation, New Law from April 1

• No income tax on financial compensation; Nirmala Sitharaman announced new income tax law effective April 1.
• IT return filing deadline extended; revisions possible until March 31 with penalty, previously December 31.
• Tax evasion will incur a 100% fine, but no jail time; an additional 10% penalty avoids imprisonment.
• New law allows filing returns until July 31 (individuals) and August 31 (unaudited businesses/trusts).
• Foreign cloud service providers in India get tax holiday until 2047 if serving Indian customers via resellers.

Why It Matters: New income tax law from April 1 eliminates tax on financial compensation and simplifies tax structure.