Budget 2026: Continuity and Strengthening Systems Ahead of New Income Tax Act, 2025

• Budget 2026 focuses on incremental reforms to strengthen compliance, improve transparency, and sustain long-term economic momentum, keeping personal income tax slabs unchanged.
• Taxpayers can now file revised returns up to March 31 with a nominal fee, extending the previous December 31 deadline, especially beneficial for those with cross-border income.
• TCS rates on overseas tour packages, education, and medical remittances under LRS are reduced to 2% from 5% or 20%, providing significant cash flow relief.
• A new five-year tax exemption on foreign income is introduced for specialized global talent working in India under government-notified schemes, provided they were non-resident for 5 years prior.
• The Foreign Assets of Small Taxpayers Disclosure Scheme, 2026 offers a six-month window for regularizing undisclosed foreign assets/income up to INR 1 crore at 30% tax, or a flat INR 1 lakh levy for assets up to INR 5 crore acquired during non-residency or from already taxed income.

Why It Matters: Budget 2026 emphasizes continuity, simplified procedures, and a facilitative tax ecosystem, distinguishing between evasion and reporting lapses.